Skimming pricing and penetration pricing

Price skimming is a pricing strategy in which a marketer sets a relatively high prieefor a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management. It allows the firm to recover itssunk costs quickly before competition steps in and lowers the market price price Skimming is referred to as riding down the demand Curve. The objective Of a price Skimming Strategy is to capture t he Consumer surplus. If this is done successfully, then theoretically no c Will pay less for the product than the maximum they are willing to pay. In practice, _________ _____ ____ ____ ___ ___ ________ ________.
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