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.
Read more about this topic: Price Skimming
Famous quotes containing the words reasons and/or price:
“There may be other reasons for a man’s not speaking in publick than want of resolution: he may have nothing to say.”
—Samuel Johnson (1709–1784)
“The price of justice is eternal publicity.”
—Arnold Bennett (1867–1931)