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:
“With no matter what human being, taken individually, I always find reasons for concluding that sorrow and misfortune do not suit him; either because he seems too mediocre for anything so great, or, on the contrary, too precious to be destroyed.”
—Simone Weil (1909–1943)
“Science is the knowledge of many, orderly and methodically
digested and arranged, so as to become attainable by one. The
knowledge of reasons and their conclusions constitutes abstract, that of causes and their effects, and of the laws of nature, natural science.”
—John Frederick William Herschel (1792–1871)
“I was like a social worker for lepers. My clients had a chunk of their body they wanted to give away; for a price I was there to receive it. Crimes, sins, nightmares, hunks of hair: it was surprising how many of them has something to dispose of. The more I charged, the easier it was for them to breathe freely once more.”
—Tama Janowitz (b. 1957)