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Price Skimming
Compiled by SuperProfs.com
Learn from India’s Best Professors
Definition
Price skimming is a pricing strategy by
which a company charges the highest
...
Learn from India’s Best Professors
Objective
Price skimming is usually a short-term
strategy that looks to maximize profit...
Learn from India’s Best Professors
Limitations
• Encourages the entry of competitors
• Should be careful with the law
• In...
Learn from India’s Best ProfessorsLearn from India’s Best Professors
To watch lecture videos related to
Price Skimming, vi...
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Price Skimming

Price skimming is a pricing strategy by which a company charges the highest initial price that consumers will pay.
Published on: Mar 4, 2016
Published in: Education      
Source: www.slideshare.net


Transcripts - Price Skimming

  • 1. Learn from India’s Best ProfessorsLearn from India’s Best Professors Price Skimming Compiled by SuperProfs.com
  • 2. Learn from India’s Best Professors Definition Price skimming is a pricing strategy by which a company charges the highest initial price that consumers will pay.
  • 3. Learn from India’s Best Professors Objective Price skimming is usually a short-term strategy that looks to maximize profits. The main objective of price skimming is to skim off consumers that are willing to pay more to have the products sooner.
  • 4. Learn from India’s Best Professors Limitations • Encourages the entry of competitors • Should be careful with the law • Inventory turn rate can be very low
  • 5. Learn from India’s Best ProfessorsLearn from India’s Best Professors To watch lecture videos related to Price Skimming, visit SuperProfs.com NOW!