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Hi John
Can you please help me with this statement
skimming results in a slow rate of diffusion and adoption and therefore results in high level of untapped demand
What does this mean
As you will know from my lectures, price skimming means charging a high price initially (and then gradually dropping the price).
At the beginning, when the price is high, only ‘rich’ people will buy the product. However there will lots of ‘less rich’ people who would like it but cannot afford it – so there is demand for the product, it is just that they can’t afford it.
As the price falls, gradually more people will buy the product,If you haven’t watch my lectures on this, then please do because I give one or two examples 🙂
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