This is a pricing tactic that is often used in electronics.
When the product is first released the price is set high, quite often a premium price. Once the people who want and can afford it have bought it, the price is lowered to target the next strata of customers – in other words the next level of customers who can afford it. This is akin to ‘skimming’ the cream off the top and then repeating the process.
Eventually the price of the product will come down to a more competitive price which will be affordable by the majority of consumers, the mass market.
For example when the PS3 was launched it was very expensive, but just in time for the Christmas market. It soon came down in price before the slimline version was launched which is viewed as a product extension.
It won’t be long though before we have a PS4 I am sure.
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