Question

Distinguish between skimming pricing and penetrating pricing.

Answer 1

Sr. No.	Skimming Pricing	Penetrating Pricing
1.	Price skimming is that strategy by which a firm charges the highest price in the starting and then lowers it over a period of time.	Penetration pricing is designed to capture a targeted market within a limited period of time by selling at a price that is lower price.
2.	Focuses on maximising profit initially by setting a high price for a new product to target early adopters and premium customers.	It aims to quickly gain market share by introducing the product at a low price to attract more customers.