Skimming

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Skimming or Prestige Pricing is a pricing strategy in which a product is priced at a relatively high initial price at its launch targeting a narrow market, and is then lowered in price over time. Skimming is used when there is a strong price-perceived quality relationship and the product is positioned at the high end of the market. Typically, Skimming strategies are employed for technology-based products, where prices are expected to fall due to the technology becoming cheaper over time. Skimming is the opposite of Penetration Pricing.

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