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Price skimming strategy is a new product strategy that results in a high initial product price...

Price skimming strategy is a new product strategy that results in a high initial product price being reduced over time as demand at the higher price is satisfied. Research product or service that may have entered the market with a high initial price and now the demand at the higher price is satisfied. Discuss why you believe consumer demand has changed for this product or service which resulted in satisfaction of the market.

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Answer : Apple iPhone is a example of price skimming where they charged higher prices from there customer in order to grab maximum customer as well as Sony play station in order to grab maximum customer and take maximum share.

Price skimming is a practice that has been adopted when the product is new and marketer want to grab maximum share from the customer as well as there is lack of competition .

Consumer demand for the product which charges higher price has been changed when the new competitors has been added as well as the new version of the product has been added in the market place.The reason for demand changes when new features of product has been added by the competitors , price of complementary good has been increased drastically and there is a rapid change in the demand of the product.As higher price has been charged from cream and than lower the price of the product.

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