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.
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Famous quotes containing the words reasons for, reasons and/or price:
“Adolescents, for all their self-involvement, are emerging from the self-centeredness of childhood. Their perception of other people has more depth. They are better equipped at appreciating others’ reasons for action, or the basis of others’ emotions. But this maturity functions in a piecemeal fashion. They show more understanding of their friends, but not of their teachers.”
—Terri Apter (20th century)
“Metaphysics is the finding of bad reasons for what we believe upon instinct; but to find these reasons is no less an instinct.”
—F.H. (Francis Herbert)
“Surely the apple is the noblest of fruits. Let the most beautiful or the swiftest have it. That should be the “going” price of apples.”
—Henry David Thoreau (1817–1862)