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:
“The lore of our fathers is a fabric of sentences.... It is a pale gray lore, black with fact and white with convention. But I have found no substantial reasons for concluding that there are any quite black threads in it, or any white ones.”
—Willard Van Orman Quine (b. 1908)
“In looking back over the college careers of those who for various reasons have been prominent in undergraduate life ... one cannot help noticing that these men have nearly always shown from the start an interest in the lives of their fellow students. A large acquaintance means that many persons are dependent on a man and conversely that he himself is dependent on many. Success necessarily means larger responsibilities, and responsibilities mean many friends.”
—Franklin D. Roosevelt (1882–1945)
“This state is full of these log cabin Abe Lincolns with price tags on ‘em. The louder he yells, the higher his price.”
—Robert Rossen (1908–1966)