A skimming pricing strategy sets a relatively high price for a product to appeal to the segment of the market which is not sensitive to price.

Question

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A skimming pricing strategy is used to set a relatively high price for a new or innovative product to appeal to early adopters or customers who are less price-sensitive and willing to pay for the unique features or benefits offered by the product. As the product's novelty wears off or competitors enter the market, the price may be lowered to appeal to a broader segment of the market.

A Skimming Pricing Strategy Sets a Relatively High Price for a Product