Author Question: In TCO, _____ includes all costs associated with bringing the product, service, or capital equipment ... (Read 56 times)

maegan_martin · **on:** Jun 29, 2018

In TCO, _____ includes all costs associated with bringing the product, service, or capital equipment to the customer's location.
a. purchase price
b. opportunity costs
c. acquisition costs
d. usage costs
e. end of life costs

Question 2

What is a skimming price strategy?

Loise Hard · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

c

Answer to Question 2

In first-time pricing, one of the general alternatives involves skimming. The objective of skimming is to achieve the highest possible contribution in a short time period. For an exporter to use this approach, the product has to be unique, and some segments of the market must be willing to pay the high price. As more segments are targeted and more of the product is made available, the price is gradually lowered. The success of skimming depends on the ability and speed of competitive reaction.