Price skimming involves setting a price above that of the competition so as to indicate a higher quality or that a product is a status symbol.

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Price skimming involves setting a high price for a product or service as a way of emphasizing its exclusivity or perceived higher quality, which sets it apart from the competition. This strategy is often employed for new products or those with unique features that give them a competitive edge. As such, customers who are willing to pay a premium price are effectively "skimming" off the top of the market.

Price Skimming Involves Setting a Price Above That of the Competition