Advanced Competitive Strategy | Online Course Support

What are the main differences between skimming and penetration pricing?

 
 
 

This is correct. The thought behind skimming is to first sell to high value adopters while in the case of penetration pricing a company charges a low price from the start to increase the user base.

 
 
 
 

This is correct. In the case of skimming a high price is set early on which is decreases later on. In penetration pricing however, firms set a low price at the beginning which is increased later on.

 

Similar Posts