Pricing Marketing Guides
Pricing Strategy
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Price leadership is a pricing strategy that sets prices lower than all other competition. In many cases, the lowest price attracts significant revenue. This is particular true for a commodity that customers view as similar in quality from one producer to the next.
A price leadership strategy doesn't mean that a firm has achieved cost leadership. In fact, price leadership is often employed by a weak competitor with an average cost structure who achieves a lower price at the expense of margins. |
Type | | Definition | Offering the lowest price of all competition. | Value | Typically boosts revenue at the expense of margins. | Related Concepts | |
Pricing
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