Practicing Success
Practicing Success
CUET Preparation Today
| Which of the following methods of pricing is generally followed by "Apple" company? |
Penetration Pricing Skimming Variable Cost Plus |
| Skimming |
| In most skimming, goods are sold at higher prices so that fewer sales are needed to break even. Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the market. Skimming is usually employed to reimburse the cost of investment of the original research into the product commonly used in electronic markets when a new range, such as smart phones, are firstly dispatched into the market at a high price. This strategy is often used to target "early adopters" of a product or service. Early adopters generally have a relatively lower price-sensitivity. |
