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unit 1
pricing strategies
predatory pricing
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chet singh
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What is predatory pricing?
A business lowering their
prices
so any
competitor
cannot make a
profit
and
compete
What does predatory pricing depend on?
The
strength
of a
brand
and whether they can
afford
to cut
prices
Give a benefit of predatory pricing?
Drives
competitors
out the
market
place or discourages
new
entrants to the
market
Give a drawback of predatory pricing ?
Depends on the price
elasticity
of the
product
-
low
elasticity would make a
difference
to
consumer
demand