market-skimming pricing

market-skimming pricing

a 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.
References in periodicals archive ?
Organisation structure plays a prominent role in economy pricing, market-penetration pricing and market-skimming pricing in all the three organisations.
[] Premium Pricing [] Economy Pricing [] Market-Penetration Pricing [] Market-Skimming Pricing 5.
1 Premium Pricing Impact present Impact present 2 Economy Pricing Impact present Impact present 3 Market-Penetration Pricing Impact present Impact present 4 Market-Skimming Pricing Impact present Impact present Impact of organisation structure on different types of pricing Total presence of impact of Sr.