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What is Price Leadership?

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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.
Overview: Price Leadership
Type
Definition
Offering the lowest price of all competition.
Value
Typically boosts revenue at the expense of margins.
Related Concepts

Pricing

This is the complete list of articles we have written about pricing.
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Commoditization
Price Fixing
Cost-plus Pricing
Equilibrium
Price Gouging
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Decoy Effect
Everyday Low Price
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Loss Leader
Predatory Pricing
Price Discrimination
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Price Competition
Price Leadership
Premium Pricing
Price Economics
Price War
Revenue Management
Veblen Goods
Price Floor
Price Promotion
Price Sensitivity
Price Skimming
Price Umbrella
Pricing Power
Pricing Strategy
Sticky Prices
Value For Money
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