New vaccine for aids treatment... As a market expert do you suggest market skimming price or market product
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Market skimming price is the strategy where company charges cost of the product as a icecream layer.
Basically, the initial price is set to the highest cost that the customer would pay. At later stages as the market is captured, price is lowered to captured the lower and lower levels of customer or consumer market.
Given the disease in question, AIDS, I would suggest to set the market skimming strategy as people would pay anything for this type of medication (assuming that this vaccine/treatment if effective and works). And another change that we would do in this strategy is that, do not lower the initial high cost of medication at later stages too.
Hope this helps.
Basically, the initial price is set to the highest cost that the customer would pay. At later stages as the market is captured, price is lowered to captured the lower and lower levels of customer or consumer market.
Given the disease in question, AIDS, I would suggest to set the market skimming strategy as people would pay anything for this type of medication (assuming that this vaccine/treatment if effective and works). And another change that we would do in this strategy is that, do not lower the initial high cost of medication at later stages too.
Hope this helps.
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