Loss LeaderA shop or ecommerce site that sells a number of items cheaply to attract customers in the hopes they buy full price items when they visit or in the future.seeking to gain their first customers and establish brand awareness.
Inventory ClearancePrices designed to clear inventory that is unpopular or soon to be out of season. quality by customers may have no other way to position their product than by offering the lowest price.
Umbrella PriceA price set by a high quality product or service that has strong customer demand. Weaker competitors need to set prices below the umbrella price or demand for their product will fall towards zero. supply and demand in a market. Individual firms have little or no influence over prices and must accept the market price to sell.discipline in pricing such that they don't lower prices for a quick short term gain but are interested in maintaining their premium image. Premium pricing is still competitive. For example, a luxury hotel might need to beat the price of a nearby competitor that is viewed as more luxurious.
|Overview: Price Competition|
The process of setting competitive prices to achieve objectives in a market.