Pricing Strategies for New Products
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There are two basic pricing strategies that an organization can utilize for introducing new products. The first strategy is Market Skimming, which involves a product being released at a high price with the cost to consumers becoming progressively less expensive the longer a product is available in a market place. The second strategy is Competitive Pricing, which involves launching a product at a low price and then raising it as the product gains maturity in the market place.
What examples from your own experiences and/or the readings can you provide of each? What factors need to be considered in making the decision on which pricing strategy to employ when preparing to launch a new product? How can you use these pricing strategies to stimulate sales of both new and mature product lines?
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This is a discussion on the factors one needs to consider for pricing new products.
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What examples from your own experiences and/or the readings can you provide of each?
Market Skimming
An example of Market Skimming, involving a product being released at a high price with cost to consumers becoming progressively less during its time in the marketplace are textbooks and vehicles.
Time is of the essence for both products because NEW books and vehicles are constantly being created. In other words, evolution ...
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