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 ?

The commercial campaigns and low-price strategies are exacerbating the situation and making it difficult for market participants to expand service penetration without compromising the return on investment.

Argentina : Competition from Triple and Quadruple Play Providers Drives Adoption in Latin American Fixed Broadband Services Market

Suppliers and marketers in the household and personal products industry have bemoaned Wal-Mart's low-price strategies for years.

Wal-Mart's tarnished image

At the same time, these low-price strategies were mainly applied in the case of two-weekly/monthly disposable contact lenses subsector, which is the most mature of the three, in which innovation and added value are currently lower and mark-ups still relatively high.