Skimming as a pricing strategy

Question

Briefly describe the skimming as a pricing strategy with appropriate illustrations.

Answer 1

Skimming is the pricing strategy adopted through firms beneath which goods are sold at high prices to capture the market value. Illustration: electronic goods such as LCD TV. The aim of this strategy is to mint higher gains in the short run period in order to recover the costs acquired in product researching, manufacturing, marketing and so on as such costs related with the product are high.