3 good questions and answers about "New-Product Pricing Strategies"

What is market skimming?
A strategy where companies set a high price when they introduce a new product to skim maximum revenue layer by layer fir the segments that are willing to pay the highest price.
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When is market skimming successful? Name 3?
1. When the quality supports the high price
2. When costs of producing a small volume are not high
3. When competitors can't undercut easily their prices
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When does the market penetration pricing works? Name 3?
1. In case of highly sensitive price
2. Low prices keeping out competition
3. High sales volume decrease production costs
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