Question

Difference between skimming and penetration pricing

Answer 1

Penetration pricing aims at achieving a greater market share, by offering the product at low prices. On the other hand, skimming pricing is used when the demand for the product is inelastic. In case of penetration pricing, the profit margin is low, whereas, in skimming pricing, the profit margin is very high.

Answer 2

Explanation:

➡️➡️ Key Differences Between Penetration Pricing and Skimming Pricing.In case of penetration pricing, the profit margin is low, whereas, in skimming pricing, the profit margin is very high. As the price of the product is initially low in penetration pricing, huge quantities of product is sold by the firm.