The decision to lower the price in Price Skimming is influenced by several factors. These include market saturation, competition, and customer response. When a product is first introduced, the price is set high to recover the costs and make a profit. As the market becomes saturated and competition increases, the price is lowered to attract more customers. Additionally, if the initial high price does not attract enough customers or leads to negative customer response, the price may be lowered sooner.
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