5. False, the price skimming strategy is used when the product is newly launched in the market and the producer wants to earn initial profit by pricing the product at very high price , which the buyers are ready to buy . Generally these products are those which form the status symbol and premium price is acceptable to certain buyers. Apple company used this strategy while launching apple iphones. Skimming pricing strategy helps the company in earning profits from the early stages of the product launch and gradually the price of the product is decreased as it makes a market for itself.
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