How Do You Spell PREDATORY PRICING?

Pronunciation: [pɹˈɛdətəɹˌi pɹˈa͡ɪsɪŋ] (IPA)

Predatory pricing refers to a pricing strategy where a company intentionally sets their prices below the cost of production in order to drive out competitors from the market. The spelling of this term is pronounced as /ˈprɛdətɔːri ˈpraɪsɪŋ/. The stress falls on the first syllable, and the word ‘predatory’ is pronounced with the stress on the second syllable. The phonetic transcription shows that the word consists of four syllables, and it is spelled with the letter ‘a’ in the first and third syllables while the letter ‘o’ is placed in the second and fourth syllables.

PREDATORY PRICING Meaning and Definition

1. Predatory pricing refers to a pricing strategy adopted by dominant or large companies in an attempt to drive out competition from the market. It involves setting prices for goods or services extremely low, often below cost or at a loss, with the aim of ultimately forcing smaller or weaker competitors out of business. This strategy can be seen as an aggressive tactic employed by a company to maintain or strengthen its market power and ultimately increase its profits in the long run.

   The intention behind predatory pricing is to eliminate competition and establish a monopoly or dominant market position, allowing the company to later raise prices and enjoy higher profits without the threat of competition. By initially selling products below cost, predatory pricing may attract customers away from rivals, leading to a decline in their market share and financial viability.

   To determine if a company's pricing strategy is predatory, legal authorities often evaluate various factors such as the pricing levels, the company's ability to sustain losses, and the long-term effects on competition. Predatory pricing is generally considered an anticompetitive behavior and is often subject to legal regulations, mainly to protect consumers and maintain a level playing field in the market.

   Overall, predatory pricing is a tactic utilized by dominant companies to undercut rivals, drive them out of business, and ultimately benefit from a reduced competitive environment allowing them to increase profits in the long term.

Common Misspellings for PREDATORY PRICING

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Etymology of PREDATORY PRICING

The word "predatory pricing" is a term derived from the combination of two words: "predatory" and "pricing".

1. "Predatory" comes from the Latin word "praedatorius", derived from the verb "praedari", which means "to plunder" or "to prey upon". It was initially used to describe animals that hunt and kill other animals for food. Over time, the term started being applied to humans or other entities engaging in aggressive or exploitative behaviors.

2. "Pricing" refers to the act of determining the value or cost of a product or service.

Therefore, "predatory pricing" refers to a business strategy in which a company sets its prices at an abnormally low level in order to eliminate or weaken competition. This strategy is typically carried out by larger and more dominant firms, aiming to drive smaller competitors out of the market.

Plural form of PREDATORY PRICING is PREDATORY PRICINGS