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    Pros and Cons of Price Skimming Strategy

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    Describe the pros and cons of using a price-skimming strategy versus a price penetration strategy for introducing a new product. Which one is likely to work better for a radical new product like a pure electric car or a solar powered laptop? Why?

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    https://brainmass.com/business/marketing/pros-cons-price-skimming-strategy-363174

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    The strategy of price-skimming involves taking advantage of having a new product in the market and initially charging a premium price for it before lowering it at a later date once it has gotten root in the market. On the other hand, a price penetration strategy approaches this from the opposite direction by introducing its product into the market using a low price, with the hope of increasing it at a later date once a dominant market share has been achieved.

    The pros of of using a price-skimming strategy over a price-penetration one is that in the mind of the ...

    Solution Summary

    This solution discusses the pros and cons of using a price-skimming strategy versus a price penetration strategy for introducing a new product. It also discusses which strategy is more likely to work for a radical new product like a pure electric car or a solar powered laptop. The explanation is given in 381 words.

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