Price skimming and penetration
Penetration pricing vs skimming pricing strategies
Penetration Vs. Skimming Marketing Strategies
Android’s Penetration Vs. Apple’s Skimming Marketing Strategies
The phones were, consequently, only purchased by customers who really wanted the new gadget and could afford to pay a high price for it.
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If the competition also lowers their prices, the companies might find themselves in a price war, leading to lower prices and lower profits for an extended period of time. And finally, competitors should not be in sight — if they are able to enter the market easily and undercut the high price, price-skimming does not work.
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