Price skimming might not always be effective due to several reasons. Firstly, it can lead to a loss of market share if the high price deters customers. Secondly, it might attract competitors who see the high profit margins and enter the market with a lower price. Thirdly, it relies on the product being perceived as high-quality or unique, which might not always be the case. Lastly, it can damage the brand's reputation if customers feel they are being overcharged.
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