MANAGEMENT

Detailed explanation-1: -Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time.

Detailed explanation-2: -Skim pricing, also known as price skimming, is a pricing strategy that sets new product prices high and subsequently lowers them as competitors enter the market. Skim pricing is the opposite of penetration pricing, which prices newly launched products low to build a big customer base at the outset.

Detailed explanation-3: -Price skimming and penetration pricing are two opposing long-term strategies. Price skimming consists of setting high prices and reducing them over time in order to maximize profit in the long term, while penetration pricing consists of setting low prices and increasing them over time.

Detailed explanation-4: -Essentially, price skimming (also known as skim pricing) is a type of pricing strategy in which businesses initially charge a high price for their product/service, before gradually reducing the price to attract a more price-sensitive market segment.

Detailed explanation-5: -Price skimming. Set a high price and lower it as the market evolves.