Reasons For Price Skimming
Price skimming occurs in mostly technological markets as firms set a high price during the first stage of the product life cycle. The top segment of the market which are willing to pay the highest price are skimmed of first. When the product enters maturity the price is lowered.
Read more about this topic: Price Skimming
Famous quotes containing the words reasons for, reasons and/or price:
“Write to the point: say immediately what you want to say most, even if it doesn’t “come first.” There are three reasons for doing this. First, you will then have said it, even if nothing else gets said. Second, your readers will then have read it, even if they read no more. Third, having said it, you are likely to have to say something more, because you will have to explain and justify what you chose to say.”
—Bill Stott (b. 1940)
“Man has lost the basic skill of the ape, the ability to scratch its back. Which gave it extraordinary independence, and the liberty to associate for reasons other than the need for mutual back-scratching.”
—Jean Baudrillard (b. 1929)
“Nowadays people know the price of everything and the value of nothing.”
—Oscar Wilde (1854–1900)