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.
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
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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