Principles of Marketing
Pricing:
Strategies
New-Product Pricing Strategies
Market-skimming pricing
Market-penetration pricing
Pricing Strategies
New-Product Pricing Strategies
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily