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    Pricing Policies: Skimming, Penetration

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    What pricing objective(s) is a skimming pricing policy most likely implementing? Is the same true for a penetration pricing policy? Which policy is probably most appropriate for each of the following products:

    a) new type of home lawn sprinkling system,
    b) a new children's toy
    c) a DVD of a best-selling movie.

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    Price skimming is most often used when a product is new or it has features and benefits the company wants to be viewed as unique in the marketplace. The pricing objective of implementing a skimming pricing policy is to set the price as high as possible, usually higher than most competitive brands, in order ...

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