Question

State any two disadvantages of the 'Skimming method of pricing.’

Answer 1

1. If there are strong rivals, this tactic could backfire. When there are stringent legal and governmental laws pertaining to consumer rights, price skimming is not an option.
2. Customers will never purchase a product when it is first introduced if the company has a history of price skimming; instead, they would prefer to wait a few months and get the product at a reduced cos