COMPETITIVE PRICE Meaning and
Definition
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Competitive price refers to the cost set for a product or service that is reasonable and attractive enough to entice customers and remain competitive within the market. It is a pricing strategy adopted by businesses to ensure they can effectively compete with other companies offering similar products or services.
To determine a competitive price, a company must consider various factors such as production costs, market demand, the prices set by competitors, and the perceived value of the product or service. The goal is to establish a price that is not only affordable for customers but also allows the business to generate profits and sustain its operations.
Offering a competitive price enables businesses to stand out in the market and increase their chances of attracting a larger customer base. It can create a favorable perception among consumers that they are getting a good deal and value for their money. However, setting a competitive price does not necessarily mean undercutting competitors. It is about finding the right balance between affordability and profitability.
Furthermore, a competitive price can also help businesses achieve economies of scale by selling larger volumes of products or services. This can lead to cost efficiencies in production, distribution, and marketing, which can further enhance the company's profitability and competitiveness.
Overall, a competitive price implies a price that allows a business to remain viable and stand out in the market while satisfying customer demands and expectations.
Common Misspellings for COMPETITIVE PRICE
- xompetitive price
- vompetitive price
- fompetitive price
- dompetitive price
- cimpetitive price
- ckmpetitive price
- clmpetitive price
- cpmpetitive price
- c0mpetitive price
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- conpetitive price
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- cojpetitive price
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Etymology of COMPETITIVE PRICE
The etymology of the word "competitive price" can be traced back to the Latin word "competere", which means "to strive together" or "to be in competition". This Latin term later evolved into the Late Latin word "competitus", which meant "to seek, strive after, or contend for something". In English, the word "competitive" was first recorded in the late 18th century, and it was derived from the Latin root. The term "price" originates from the Old English word "pris", which meant "value" or "worth". Over time, "competitive price" emerged as a phrase used to describe a price that is lower or equal to that offered by competing sellers, emphasizing the competitive element in the business context.
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