Using a skimming price is a typical strategy for pricing new products, while market-penetration is a more typical strategy for pricing products that are advanced in the product life cycle.

Question

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Skimming pricing is often used for new, innovative, or premium products to maximize profits with a high initial price, while market-penetration pricing aims to attract a large number of buyers and a significant market share by setting a low initial price for a new product.

Using a Skimming Price Is a Typical Strategy for Pricing