UNDER PRICING Meaning and
Definition
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Under pricing refers to the act of setting a price for a product or service that is lower than its perceived or actual value. It is a deliberate pricing strategy adopted by businesses with the aim of attracting customers, gaining market share, or increasing sales volume.
When a product is under priced, its price is set lower than what would typically be expected for similar products in the market. This can be done for various reasons, including but not limited to: introducing a new product or brand to the market, targeting price-sensitive customers, undercutting competitors, or creating a perceived bargain or opportunity for customers.
Under pricing can have both positive and negative implications. From a customer's perspective, under pricing can be advantageous as it presents an opportunity to purchase goods or services at a lower cost. However, it can also suggest lower quality or a lack of credibility, leading customers to question the value or reliability of the product or service.
From a business standpoint, under pricing can be a strategic move to gain a competitive advantage, increase market share, generate quick sales, or penetrate new markets. However, it can also lead to reduced profitability, inability to cover costs, or generate sufficient revenue.
It is important to note that under pricing may not be sustainable in the long term, as it can create unrealistic customer expectations and erode profitability. Therefore, businesses must carefully consider the potential benefits and drawbacks before implementing an under pricing strategy.
Common Misspellings for UNDER PRICING
- underpricing
- ynder pricing
- hnder pricing
- jnder pricing
- inder pricing
- 8nder pricing
- 7nder pricing
- ubder pricing
- umder pricing
- ujder pricing
- uhder pricing
- unser pricing
- unxer pricing
- uncer pricing
- unfer pricing
- unrer pricing
- uneer pricing
- undwr pricing
- undsr pricing
- unddr pricing
Etymology of UNDER PRICING
The word "underpricing" is formed by combining the prefix "under-" meaning "below" or "less than" and the verb "price".
The root of the word, "price", comes from the Old French "pris" or "prise", meaning "reward" or "value". This further derives from the Latin word "pretium", which means "price" or "value".
When the prefix "under-" is added to "price", it sets the meaning of offering a product or service below its perceived value or market price. Underpricing can be used as a strategy to gain a competitive advantage, attract customers, or stimulate demand.
