Commercial Applications
Give one difference between skimming pricing and penetrating pricing.
Marketing Mix
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Answer
| Basis | Skimming Pricing | Penetrating Pricing |
|---|---|---|
| Initial Price | A very high price is set initially to skim the cream of demand. | A low price is set initially to capture as large a market as possible. |
| Target Market | Aims to 'sell to the classes' (affluent consumers). | Aims to 'sell to the masses' (price-sensitive consumers). |
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