Overpricing: meaning, definitions and examples
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overpricing
[ˈoʊvərˌpraɪsɪŋ ]
Definitions
business
The act of setting prices too high for the value of a product or service, often resulting in decreased sales and customer dissatisfaction.
Synonyms
excessive pricing, inflated prices, price gouging.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| overpricing |
Used when the price set for a product or service is higher than it should be in a general sense.
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| inflated prices |
Refers to prices that have been increased to an unreasonable or artificial level, often due to external factors.
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| excessive pricing |
Often used in a formal or business context where the prices exceed what is deemed reasonable or fair.
|
| price gouging |
Has a negative connotation and is used to describe the act of raising prices to an unfair level, particularly during emergencies or shortages.
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Examples of usage
- Overpricing can lead to losing customers to competitors who offer more reasonable prices.
- When the company was accused of overpricing their products, their reputation suffered.
- Customers are quick to notice when overpricing occurs and are likely to seek alternatives.
economics
To set the price of a product or service higher than its perceived value, potentially harming sales and customer loyalty.
Synonyms
charge too much, inflate the price, mark up excessively.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| overpricing |
Similar to 'overpricing,' this refers to setting prices too high but can be used more as a general complaint about the high cost rather than a technical term. It usually carries a negative connotation.
|
| inflate the price |
This phrase suggests that someone is deliberately increasing prices, often for deceptive or unfair reasons. It's commonly used in discussions about fraud, manipulation, or unethical business practices.
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| charge too much |
This is a more informal way of saying that someone is asking for too much money for their goods or services. It's commonly used in everyday conversations and can be perceived negatively.
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| mark up excessively |
This term is often used in retail or wholesale contexts where the standard practice is to apply a markup. However, 'excessively' implies that the markup is unreasonably high, often seen as unfair.
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Examples of usage
- Some businesses overprice their products in an attempt to maximize profits, but this strategy can backfire.
- Customers may feel deceived if they discover that a company is intentionally overpricing its offerings.
Interesting Facts
Economics
- Overpricing can result from high demand, where sellers take advantage of buyers wanting a scarce product.
- Many businesses use pricing strategies that may lead to overpricing, like premium pricing to suggest better quality.
- Price elasticity of demand shows that if prices rise too high, people might stop buying the product entirely.
Psychology
- People often perceive higher-priced items as higher quality, which can lead them to accept overpricing without question.
- Cognitive bias can play a role; if someone believes an item is worth more, they might undervalue alternatives that are more reasonably priced.
- Overpricing can trigger feelings of disappointment in consumers when they don't feel the value matches the cost.
Technology
- In the tech industry, overpricing can occur when companies charge a high premium for new gadgets, relying on buyer excitement.
- Software subscriptions often demonstrate overpricing once users realize that cheaper alternatives offer similar features.
- The rise of online marketplaces has encouraged price comparison, making it easier for consumers to identify overpricing.
Pop Culture
- Reality TV shows about flipping houses often showcase instances of overpricing in real estate, impacting buyer decisions.
- In the fashion world, luxury brands may exhibit overpricing strategies, creating an aura of exclusivity and desirability.
- Crowdfunding campaigns can sometimes lead to overpricing, particularly if backers feel the excitement outweighs the realistic value.
Business
- Overpricing can lead to brand damage if consumers feel cheated after purchasing overvalued items.
- Strategically setting prices too high can backfire, making even loyal customers hesitant or angry.
- Sustainable practices encourage companies to avoid overpricing by focusing on fair pricing models to retain consumer trust.
Translations
Translations of the word "overpricing" in other languages:
🇵🇹 superfaturamento
🇮🇳 अधिक मूल्य निर्धारण
🇩🇪 Überteuerung
🇮🇩 pemahalan
🇺🇦 завищення цін
🇵🇱 przesadzanie z cenami
🇯🇵 過剰価格設定 (かじょうかかくせってい)
🇫🇷 surtarification
🇪🇸 sobreprecio
🇹🇷 aşırı fiyatlandırma
🇰🇷 과잉 가격 책정 (gwahing gagyeok chaekjeong)
🇸🇦 التسعير الزائد
🇨🇿 předražení
🇸🇰 nadhodnocovanie
🇨🇳 定价过高 (dìngjià guò gāo)
🇸🇮 precenjevanje
🇮🇸 ofverðlagning
🇰🇿 бағаны асыра бағалау
🇬🇪 ფასების გადაჭარბება
🇦🇿 qiymətlərin çox artırılması
🇲🇽 sobreprecio