New product pricing strategy
• Pricing An Innovative Product: Pricing of an innovative product can be through the following ways-
o Market Skimming Pricing: Selling a product at a high price, sacrificing high sales to gain a high profit, therefore ‘skimming’ the market is called the market skimming pricing strategy. Usually employed to reimburse the cost of investment of the original research into the product: commonly used in electronic markets when a new range are firstly dispatched into the market at a high price. This strategy is often used to target "early adopters" of a product or service.
o Market Penetration Pricing: This is just the opposite methods of the previous method. Setting the price low in order to attract customers and gain market share is called the market penetration pricing. The price will be raised later once this market share is gained.