Briefly describe the pricing strategy of new products and the conditions for its implementation.

A: New product pricing strategy:

(1) skimming pricing strategy: at the initial stage of the product life cycle, set the price very high to obtain the maximum profit. On condition that:

There are enough buyers in the market, and their demand is inelastic, so the market demand for fixed prices will not decrease;

(2) High prices may reduce demand, thus reducing output and increasing costs, and will not offset the benefits brought by high prices;

(3) In the case of high price, it is still monopolized and there is no competition. This is the case with products with patent protection.

(2) Infiltration pricing strategy: enterprises set lower prices to attract a large number of customers to buy and increase market share. On condition that:

(1) Market demand is sensitive to price, and low prices will stimulate the rapid increase of market demand;

② The production level and operating expenses of enterprises will decrease with the increase of production and operation experience;

(3) Low price will not cause actual competition and potential competition.

(3) Satisfied pricing strategy: a price that both parties are satisfied with, that is, neither high nor low.