The skimming pricing strategy is used when there is a lot of competition in the market.

O True

O False

Skimming price strategy is a pricing strategy on products and services. In this case, the company will charge high prices on the first customers and lower the prices over a certain period. Additionally, the market demand increases due to customer satisfaction, attracting new entrants in the market hence competition. Therefore, the skimming strategy acts as a sieve, whereby it lowers products and services' prices to keep the first customers. Moreover, as the prices continue to surge, the seller decreases the prices, forcing competitors to lower the price to meet the market demand. Thus, skimming pricing strategy is used in competitive market hence the statement is true.