Low-Price Strategy

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Low-Price Strategy

In marketing, a strategy in which a newcomer to a market establishes a low price for products, especially when there is already significant competition. This can be advantageous when the seller must rely on high volume for profit; that is, even though profit margins would be low, the net income would still be high because of the large number of sales. A low-price strategy also helps create market share.
References in periodicals archive ?
But the domestic TiO2 price accelerated its decline as producers implemented low price strategies to achieve their full-year sales target, and the price of titanium feedstock followed the trend of TiO2 price.
Those who are concerned by the multiples' low price strategies may well decide not to embark on the lengthy conversion process.
Low price strategies aim to develop competitive advantages based on cost efficiencies and offer products that are positioned in the lower-priced market segments.
principals, combined with their access to financial resources would lead to the adoption of low price strategies by U.
Whereas previous research suggests that Hungarians have had difficulty acquiring financial resources, knowledge of how to integrate manufacturing with technology, and marketing skills necessary for low price strategies, they do have the knowledge needed to execute differentiation strategies.
A review of the mean scores across both strategies reveals that regional partnerships place the lowest emphasis on low price strategies and they place the highest emphasis on premium price strategies.
Sole proprietorships appear to be aggressively pursuing low price strategies.
Low Prices - Most hypermarkets are utilizing price cutting and "every day" low price strategies to attract shoppers into the store.
These brands tend to be KVIs, with deep penetration, full distribution and retail pricing very susceptible to reductions (temporary or permanent) in line with retailers' low price strategies.
We've watched with interest how fast food restaurants have bet on low price strategies that offer the consumer nothing more than saving money.