Market Skimming Pricing: An Examination of Elements Supporting High Price for New Products in Pakistan

Abstract

Market skimming is a very important pricing strategy for the companies making innovative and technology based products. Market skimming pricing can be best practiced when the company is highly reputable, providing great quality and innovative products and the customers give a great value to the introduced technology and readily adopt it. The objective of this paper is to find out the factors responsible for market skimming pricing. In this research, the individuals using personal computers are taken as the population whereas Product quality, Brand image, Innovation and Technology adoption are taken as the variables responsible for practicing Market Skimming Pricing. A questionnaire is designed and the survey is conducted. The results showed that all the four variables significantly and positively influence market skimming pricing. The practice of market skimming pricing is explained up to 27% by the independent variables considered.

Keywords: market skimming pricing, product quality, brand image, innovation, technology adoption.