Underpricing: meaning, definitions and examples

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underpricing

 

[ ˌʌndərˈpraɪsɪŋ ]

Noun / Verb
Context #1 | Noun

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.
Context #2 | Verb

business context

To set a price for a product or service that is below its market value or competitors' prices.

Synonyms

lowball, undercut, undervalue

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.