Market-Skimming pricing & Market-Penetration pricing...

Market-Skimming pricing & Market-Penetration pricing...

Market Skimming price: New products or services are initially priced higher and then with the passage of time price is lowered. The reason for this strategy is that firms often try to reap out greater revenues by being pioneers in the market as compared to other rival firms.

Penetration pricing is a strategy of setting a low initial entry price and then gradually increasing it. The aim is to attract customers so that they can switch to other brands. Hereby marketing objective of increasing market share can be achieved.