The Price Skimming Strategy
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- Опубліковано 7 вер 2024
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Subscribe to Alanis Business Academy on UA-cam for updates on the latest videos: www.youtube.co... Price Skimming is a common pricing strategy used for new products. Employing price skimming involves setting a high initial price, which helps a business recover the costs associated with developing and marketing the product. Although price skimming can be used in a variety of industries, it's commonly seen in consumer electronics, including: smartphones, video game consoles, and tablet computers.
Learn more about price skimming, and the conditions that need to exist for this pricing strategy to be effective, in this video.
excellent video...good info
Great job with this content!
Just the information i wanted :)
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I'm confused, Can a product be price elastic even if it is a new product in a market and the only such product in its category, such that consumers do not want to purchase it at it's initial high price skimming price? If so, could you please give an example?
IMO, price elasticity is subjective to the purchasing customers and thus, the situation you mentioned is still possible even if it's a monopoly. A product can appeal to different customer segments, and depending on their economic backgrounds, one can be relatively more price sensitive than the other.
Price sensitivity (and hence, price elasticity) is also affected by other factors such as the product being a consumer staple vs. discretionary, price level (imagine the percentage of your income spent on the product), or economic utility of the product and how the pricing is being justified by that.
good information
Merci !
De rien!