answersLogoWhite

0

What is a predatory pricing?

Updated: 9/26/2023
User Avatar

Wiki User

7y ago

Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What is a predatory pricing?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is perdatory pricing?

Predatory means "in the manner of a predator." Predatory pricing is designed to drive competitors out of business by pricing so low that the competition can't compete.


Do economists all agree that predatory pricing exists and is a common practice?

False, economists do not all agree that predatory pricing exists and is a common practice.


What does predatory pricing mean?

The pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market


What are the different pricing methods in international marketing?

Bid Pricing Cost Plus Pricing Customary Pricing Differential Pricing Diversionary Pricing Dumping Pricing Experience Curve Pricing Loss Leader Pricing Market Pricing Predatory Pricing Prestige Pricing Professional Pricing Promotional Pricing Single Price for all Special Event Pricing Target Pricing


What are the advantages and disadvantages of Predatory Pricing?

The pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.


What does predatory pricing involve?

A large company charging below its production cost in order to eliminate competition


Who is the government attempting to help by discouraging predatory pricing?

Ultimately, the government is trying to protect the consumer. Predatory pricing is used to drive a competitor out of a market, or keep a potential competitor from entering a market. If successful, the entity employing predatory pricing tactics can maintain a monopoly (or near monopoly) in a market and use the lack of competition to set prices anywhere it wants. The consumer, having no choice in a marketplace, is forced to pay whatever the entity chooses to charge.


The market price may be an inappropriate transfer price if?

competitor s are practicing predatory pricing to eliminate competitor


What did the government claim Microsoft did to illegally extend its control over the market?

It had used predatory pricing to drive competitors out of business


What did the government claim Microsoft did to illegally extend it control over the market?

It had used predatory pricing to drive competitors out of business


What did the government claim Microsoft to illegally extend its control over the market?

It had used predatory pricing to drive competitors out of business


Difference and similarities between penetration pricing and predatory pricing?

Similarity is that both tend to push the price levels `lower' Difference is in the `objective' or `orientation' or `thought' behind the pricing strategy Penetration Pricing is when the price is pegged at a rate that very price-sensitive segments find acceptable. e.g. Nokia 1100 when introduced in Indian markets. The objective is to open up newer market segments Predatory Pricing is when prices are set lower than average selling prices of industry and competitors. Objective is to put pressure on competitors and price them out of the market