Price skimming generally involves setting a high initial price for a new product and then gradually lowering it over time. There are a few types of price skimming, including:
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Market Skimming: Targeting high-end consumers first and then decreasing prices to attract more price-sensitive customers.
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Penetration Skimming: Starting with a low price to quickly attract customers and gain market share, then gradually raising prices.
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Product Line Skimming: Applying different skimming strategies across various products within a product line, catering to different market segments.
Each type aims to maximize revenue while managing consumer perceptions and demand.
