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Price Skimming
Price skimming

One of the most awkward problems in pricing is that different consumers have different views on what constitutes good value for money. Some people would pay a great deal more for a product than the company is asking, others feel it is too expensive and will not become customers: a firm that sets a single price for the product will find itself in effect giving away profit to the first group, who pick up a bargain, and losing sales to the latter group, even if the company could actually drop the price and still ...

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