Thursday 31 December 2015

Characteristics of Market Skimming Pricing

Characteristics of Market skimming Pricing


1.    High Introduction Price

In market skimming strategy organization charge high price at the time of introduction, because some customer are ready to buy the product at high price.

2.    Price Gradually Decreases

In market skimming strategy prices are gradually decreases to capture market share.

3.    High Advertising Cost


In market skimming strategy, firm is required to spend a lot on the advertising to attract maximum high value customer (customer ready to pay high price).

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