Examples of Price skimming in the following topics:
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- Penetration and skimming are two strategies employed in pricing new products.
- Price skimming involves the top part of the demand curve.
- A premium product generally supports a skimming strategy.
- Video game systems, such as the Sony PS3, usually employ the classic new product pricing strategy, known as skimming.
- Compare penetration and skimming as two strategies for setting a price level
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- Price skimming is a pricing strategy where initially a product price is set very high, but lowered over time.
- Price skimming is sometimes referred to as "riding down the demand curve."
- Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
- Price skimming is sometimes referred to as riding down the demand curve.
- The objective of a price skimming strategy is to capture the consumer surplus.
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- Firms can engage in premium pricing by keeping the price of their good artificially higher than the benchmark price.
- A premium pricing strategy involves setting the price of a product higher than similar products .
- This strategy is sometimes also called skim pricing because it is an attempt to "skim the cream" off the top of the market.
- It is also called image pricing or prestige pricing.
- Luxury has a psychological association with price premium pricing.
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- Price: Prices for such products may be a little higher than conventional alternatives.
- There are various strategies that can be applied when pricing a product like skimming and penetration pricing.
- Skimming means to price the product highly to increase profits.
- For example if you invent a new software which no one else has, you can skim the market because the customers are forced to buy from you until there is more competition.
- Penetration pricing can be applied when you want to enter a market and price your product lower than the perceived market price so that more people will buy it and this will increase your market share.
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- Ethical marketing issues include marketing redundant or dangerous products/services; transparency about environmental risks, product ingredients (genetically modified organisms), possible health risks, or financial risks; respect for consumer privacy and autonomy; advertising truthfulness; and fairness in pricing and distribution.
- Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions including price discrimination and price skimming.
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- For example, some airlines will voluntarily add a few dollars to the price of their tickets and several power companies provide the option of paying a higher monthly fuel bill to help offset carbon emissions.
- In other examples, Range Rover automobiles offered an emissions offset for the first 45,000 miles (72,000 kilometres) which was factored into their purchase price and a ski resort in Vail, Colorado, once enticed skiers to buy energy credits to help buy a wind turbine so in the future the skiers will be carbon-neutral when they are lifted to the top of a nearby mountain.
- Brokers have been known to skim as much as 60% off of carbon-offsetting investments as they're passed from one middleman to another, tree-planting schemes have been found to be non-existent, and some solar energy projects have reportedly turned out to be little more than scams.
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- Competitive-based pricing occurs when a company sets a price for its good based on what competitors are selling a similar product for.
- Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market .
- For instance, if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at a higher or lower price, all depending on what the company wants to achieve.
- One advantage of competitive-based pricing is that it avoids price competition that can damage the company.
- Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.
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- Status quo pricing is the practice of maintaining current price levels that other firms are charging.
- Price-Quality Effect: Buyers are less sensitive to price the more higher prices signal higher quality.
- Status-quo pricing, also known as competition pricing, involves maintaining existing prices (status quo) or basing prices on the prices of competitor firms .
- Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.
- Compare Nagle and Holden's nine laws of price sensitivity with status-quo pricing
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- confirming the impact the corporate strategies should have on pricing policy
- (TT Nagle, The Strategies and Tactics of Pricing, Prentice-Han, Inc.
- Englewood Cliffs, N.J., 1999. ) Price sensitivity reduces:
- A gray market comes about when individuals buy products in a lower-priced country from a manufacturer's authorized retailer, ship them to higher-priced countries, and then sell them below the manufacturer's suggested price through unauthorized retailers.
- Questions to consider are: What currency should a company price its products?
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- Differential pricing exists when sales of identical goods or services are transacted at different prices from the same provider.
- Price differentiation, or price discrimination, exists when sales of identical goods or services are transacted at different prices from the same provider.
- This usually entails using one or more means of preventing any resale: keeping the different price groups separate, making price comparisons difficult, or restricting pricing information.
- There are two conditions that must be met if a price differentiation scheme is to work.
- For example, airlines routinely engage in price differentiation by charging high prices for customers with relatively inelastic demand (business travelers) and discount prices for tourists who have relatively elastic demand .