Definition of price penetration

Description:The price of the subscription is raised at the end of the first year, and if the consumer decides to retain his subscription, the demand for this service becomes inelastic. Definition Penetration pricing is the practice of setting an initial price much lower than the eventual standard price. In addition, with price skimming, a company is looking to maximize its long-term profit by acquiring as much consumer surplus as possible by setting a relatively high price in the beginning and lowering it over time. It is also an appropriate strategy to use when you intend to become the market standard, marginalizing the competition.

Views: 7465 Date: 2018-12-25 Favorited: 36