Skimming Pricing Strategy:
Meaning: A high premium price is charged when a product (that offers unique customer benefits) is launched in the market.
Objective: This strategy aims at high profit margins in the early stages of product introduction.
Types: The skimming pricing strategy can be of two types:
(a) Rapid Skimming Pricing – where high prices are charged, and the product is promoted with heavy promotional expenditure.
(b) Slow Skimming Pricing – where high prices are charged, and there is limited promotional effort to promote the product.
55 Comments