Penetration pricing is a marketing strategy implemented to draw customers to a new product or service.

Price skimming is a strategy in which a company will list a product as high as possible, gradually reducing the price until it meets a market average.

A small company introducing a new type of cell phone is an example of when price skimming may be used. Technical companies can usually count on certain customers, those who always buy first, to ...

Example of Penetration Pricing Versus Price Skimming Grocery giant Costco uses penetration pricing for the organic foods it sells.

5 pricing strategies to consider (with pros and cons) Skimming, anchoring, penetration; all ways to price products and services, but what do they mean? Here's how you can create a successful pricing ...

Price skimming in real life: Two generations of iPhones. Image source: Apple You'll see Apple doing exactly this with each new generation of the iPhone, for example.