Underpricing: meaning, definitions and examples
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underpricing
[ ˌʌndərˈpraɪsɪŋ ]
business strategy
The act of selling a product or service at a price lower than its actual value in order to gain a competitive advantage or attract more customers.
Synonyms
discounting, underselling, undershooting
Examples of usage
- The company's underpricing of their new smartphone led to a surge in sales.
- Underpricing can sometimes result in a loss of profit for the business.
business context
To set a price for a product or service that is below its market value or competitors' prices.
Synonyms
Examples of usage
- The company decided to underprice their new software to gain market share quickly.
- Underpricing can be a risky strategy if not done strategically.
Translations
Translations of the word "underpricing" in other languages:
🇵🇹 subvalorização
🇮🇳 कम मूल्य निर्धारण
🇩🇪 Unterbewertung
🇮🇩 penetapan harga rendah
🇺🇦 заниження ціни
🇵🇱 niedocenienie
🇯🇵 低価格設定
🇫🇷 sous-évaluation
🇪🇸 subvaloración
🇹🇷 değerinin altında fiyatlandırma
🇰🇷 저평가
🇸🇦 التسعير المنخفض
🇨🇿 podhodnocení
🇸🇰 podhodnotenie
🇨🇳 低定价
🇸🇮 podcenjevanje
🇮🇸 undirmat
🇰🇿 бағаны төмендету
🇬🇪 ფასის შემცირება
🇦🇿 qiymətin aşağı salınması
🇲🇽 subvaloración
Word origin
The term 'underpricing' originated in the field of economics and business. It is often used to describe the practice of intentionally setting prices below market value to achieve specific goals. This strategy can be seen in various industries, such as retail, technology, and services. Underpricing can have both positive and negative implications for businesses, depending on the context and execution.