Question

5. What are the conditions to use skimming pricing?

Answer 1

Answer:

ᴄᴏɴᴅɪᴛɪᴏɴs ᴡʜᴇʀᴇ ᴘʀɪᴄᴇ sᴋɪᴍᴍɪɴɢ ᴅᴇsɪʀᴀʙʟᴇ

ᴡʜᴇʀᴇ ᴛʜᴇ ᴇxᴘᴏʀᴛᴇʀ ᴡᴀɴᴛs ᴛᴏ sᴋɪᴍ ᴛʜᴇ ᴄʀᴇᴀᴍ ʙᴇғᴏʀᴇ ᴄᴏᴍᴘᴇᴛɪᴛᴏʀs ᴇɴᴛᴇʀ ᴛʜᴇ ᴍᴀʀᴋᴇᴛ. ᴡʜᴇʀᴇ ᴀ ᴄᴏᴍᴘᴀɴʏ ᴡᴀɴᴛs ᴛᴏ ᴍᴀxɪᴍɪᴢᴇ ɪᴛs ʀᴇᴠᴇɴᴜᴇ. ᴡʜᴇɴ ɪɴɪᴛɪᴀʟ ᴄᴏsᴛ ᴏғ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ɪs ᴠᴇʀʏ ʜɪɢʜ ᴡʜɪᴄʜ ʜᴀs ᴛᴏ ʙᴇ ʀᴇᴄᴏᴠᴇʀᴇᴅ ᴀs ᴇᴀʀʟʏ ᴀs ᴘᴏssɪʙʟᴇ.

Answer 2

Answer:

Price skimming is when the company will set the highest price that a customer who really wants the product will pay for the product. This strategy is used most often with what are sometimes considered luxury goods or goods that have new technology.