publication . Article . 2014

Skimming or Penetration? Strategic Dynamic Pricing for New Products

Martin Spann; Marc Fischer; Gerard J. Tellis;
Open Access
  • Published: 19 Dec 2014 Journal: SSRN Electronic Journal (eissn: 1556-5068, Copyright policy)
  • Publisher: Elsevier BV
Current complex dynamic markets are characterized by numerous brands, each with multiple products and price points, and differentiated on a variety of product attributes plus a large number of new product introductions. This study seeks to analyze dynamic pricing paths in a highly complex branded market, consisting of 663 products under 79 brand names of digital cameras. The authors develop a method to classify dynamic pricing strategies and analyze the choice and correlates of observed pricing paths in the introduction and early growth phase of this market. The authors find that, despite numerous recommendations in the literature for skimming or penetration pri...
free text keywords: Microeconomics, New product development, business.industry, business, Price skimming, Product lifecycle, Portfolio, Reputation, media_common.quotation_subject, media_common, Dynamic pricing, Market price, Penetration pricing, Limit price, Rational pricing, Variable pricing, Industrial organization, Psychological pricing, Marketing, Economics
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