selective price cutting

selective price cutting

a PRICING strategy which involves price cuts on particular brands or in particular sales territories in order to boost demand. More predatorily, price cuts may be deployed in order to remove competitors.
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Carbonates showed excellent volume growth in Q2-14 as a result of strong marketing and selective price cutting
Its "business model" relies on building a big metal shed on several hectares of countryside beside a main road, paying staff a minimum wage and forcing smaller local rivals in the town centre out of business by selective price cutting until they have achieved a monopoly.
All this selective price cutting is little more than a gimmick - shoppers pay less for their own-label baked beans but meanwhile the price of butter, or something else, will go up to compensate.

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