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Answers

Example 2

What products may be priced using a market-skimming strategy?

Market skimming is often used in relation to electronic products when a new
range (e.g. a new iPhone, a new laptop range with new functionality) are first
released onto the market at a high price.

The target is the ‘early adopters’ of such products; their price sensitivity is
relatively low because their interest in the product is substantial or they have a
stronger appreciation of the qualities offered by the products.

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