Price Skimming

Knowledge Center

   

Description of Price Skimming. Explanation.

 

Definition of Price Skimming. Description.


Price Skimming is a market-based approach to pricing wherein a high price is charged in initial market maturity stages to ' cream off the market'. Prices are set high in order to attract the least price-sensitive customers and to generate profit quickly, before competitors enter the market and start to force price erosion.


It is an attractive strategy for small, highly innovative companies with a new and unique product. Prices can and should be lowered after the cream has been skimmed. An associated advantage with this pricing method is its contribution to building the value of a brand or of the reputation of a firm. The method is also useful for prestige products and in general for products where demand is relatively inelastic (customers are not very price sensitive).


Special Interest Group - Price Skimming


Special Interest Group (18 members)


Forum - Price Skimming  

In the forum section you will find recent discussions within this knowledge area.


  Price Skimming Cases and Examples (1 reactions)
Hi, do you know of a remarkable case or an interesting examp...
 
 
 
 

Best Practices - Price Skimming

In the best practices section you will find the best forum discussions within this knowledge area.



Expert Tips - Price Skimming

In the expert tips section you will find advices from experts within this knowledge area.



Resources - Price Skimming

In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area.


Overview of Pricing and Pricing Strategies

Pricing...
 
 

News about Price Skimming


     
 

Videos about Price Skimming


     
 

Presentations about Price Skimming


     
 

Books about Price Skimming


     
 

More about Price Skimming


     

Compare with: Product Life Cycle  |  Marketing Mix  |  Promotional Pricing  |  Competitive Pricing  |  Discount Pricing  |  Cost-plus Pricing  |  Standard Cost Pricing  |  Marginal Cost Pricing  |  Target Pricing  |  Penetration Pricing  |  Psychological Pricing  |  Perceived Value Pricing

Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Marketing  |  Strategy


More on Management  |  Return to Management Dictionary  | 

 

This ends our Price Skimming summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.0 - Last updated: 24-5-2019. All names of their owners.