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Example of market-skimming pricing

Updated: 2/1/2024
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"When Sony introduced the world's first high definition television to the Japanese market in 1990, the high-tech sets cost $43,000. These televisions were purchased only by customer who could afford to pay a high price for the new technology. Sony rapidly reduced the price over the next several years to attract new buyers. By 1993, a 28-inch HDTV cost a Japanese buyer just over $6,000. In 2001, a Japanese consumer could buy a 40-inch HDTV for about $2000, a price that many more customers could afford. In this way, Sony skimmed the maximum amount of revenue from the various segments of the market." Armstrong, G. and Kotler, P. (2008) Principles of Marketing (12th ed.) Upper Saddle River, NJ: Pearson Prentice Hall

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