market-skimming pricinga pricing policy that involves charging a comparatively high price for a product to secure large profit margins. This policy can be adopted by a firm where consumers are not price sensitive. More specifically, such a tactic may be used where a new product is still in the introductory phase of its PRODUCT LIFECYCLE and embodies novel features which enable it to command a premium price. Contrast with MARKET PENETRATION PRICING. See PRICING OBJECTIVES, PRICING METHODS, ELASTICITY OF DEMAND.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson