price leader

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Price Leader

A company that sets a price for a product and whose market share and/or brand loyalty is so strong that other companies are compelled to match or beat the price. The company that first changes the price is said to show price leadership.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

price leader

a FIRM that establishes the market PRICE for a good or service and initiates price changes that are then followed by competing suppliers. Two kinds of price leader have been identified:
  1. DOMINANT FIRMS that are able to secure compliance to their prices by smaller rivals because of their powerful positions in the market;
  2. barometric price leaders whose price changes are accepted by other suppliers because of their recognized adeptness at establishing prices fully reflective of changing market conditions.

Price leader-follower relationships are a typical feature of OLIGOPOLY markets in coordinating price changes and tend to result in a strong degree of PRICE PARALLELISM. See PRICE LEADERSHIP.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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However, CEO and co-owner Bill Griffin still works to promote his stores as better overall values than competitors, not as price leaders.
The value-price image is projected through its d'cor package and is designed to give operators a profit structure that makes them the low price leaders in their respective markets.
Even though we are not the price leaders, customers prefer to buy the Dell brand," said Ayass.
However, in Fitch's opinion, these operating challenges may affect community banks more severely than global trading banks, and large regional banks, which are more diversified, benefit from economies of scale and are typically price leaders in their operating markets.
But with the smaller price leaders out of the way, that could spell an end to aggressive competition for discounted tariffs from the Big 6.
These two areas surrounding Tokyo Station have long been the price leaders among Japan's office markets owing to their access to train and subway networks, a crucial factor considering most Tokyo office workers commute by rail.
Carphone Warehouse boss Charles Dunstone said: 'Fresh have always been price leaders. Now we want to make an even bigger difference to our customers' mobile bills.
Yankee compared prepaid and postpaid plans from the leading carriers, finding that prepaid plans for the price leaders were only a 20% premium to postpaid plans.
"They are the price leaders and we are the followers," he said.
In many cases, says Liberman, the larger banks, which raise prices and expand their range of services subject to fees, are the price leaders. Smaller banks, which often have lower overhead, charge fewer and lower fees.
During the promotion the new rate to send a text to Nigeria will be 3.5cents USD / 2.3p GBP or 2.5c EUR per message and therefore making Localphone one of the price leaders in the market for sending texts to Nigeria.
He said: "They are the price leaders and we are the followers."