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The market skimming pricing strategy is a part of a deliberate attempt to reach a market segment that is willing to pay a premium price for a particular brand or for a specialized or unique product. True or False?

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Final answer:

The market skimming pricing strategy is indeed a deliberate attempt to reach a market segment willing to pay a premium price.

Step-by-step explanation:

The statement, "The market skimming pricing strategy is a part of a deliberate attempt to reach a market segment that is willing to pay a premium price for a particular brand or for a specialized or unique product," is true.

Market skimming is a pricing strategy where a company sets a high initial price for a product in order to maximize profits from the early adopters who are willing to pay a premium.

Over time, the price is gradually lowered to attract more price-sensitive customers from broader market segments. This strategy is often used for products that are innovative or have unique features, and it allows companies to capture maximum value from their target market.

The statement is true: the market skimming pricing strategy indeed targets a segment of consumers who are willing to pay a premium price for a specialized or unique product, or for a product from a well-respected brand that has been built up over the years.

This strategy is also frequently employed in industries where economies of scale are small compared to demand, or in markets with product differentiation and monopolistic competition.

Such an approach is common when a company has established a strong reputation, holds trade secrets, or possesses a trademark that reinforces their brand exclusivity.

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