A manufacturer of a portable digital HD camera is considering a skimming pricing strategy for its newproduct. Which of the following conditions would argue againstusing a skimming pricing strategy forthe camera?There will be a large potential market, even if the product is sold at a high price. Technological problems still exist for competitors; their products are not equivalent. Increasing the volume sold reduces production costs substantially. Consumers perceive a strong price-quality relationship for this product. Many consumers in the target market are innovators

Option C. Increasing volume substantially reduces production costs.

Explanation:

Skimming pricing is the strategy to charge the customer relatively high price because the product is innovative.

Option A is incorrect argument against skimming strategy because the argument would be in favor if there large potential customers in the market whom the company can charge higher prices.

Option B is also incorrect argument against skimming strategy because the high initial price of the product will not attract competitors because the product is in its growth phase.

Option C is correct argument against skimming strategy because selling at a lower price will enable the company to sell higher number of products which will enable the company to gain economies of scale which would reduce the production costs substantially.

Option D is incorrect argument because customers interpret the high price as signifying high quality which is again in the favor of the company's skimming strategy.

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answer; someone must cover the cost associated with the provision of scarce goods in both sectors;