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Expansionistic pricing

October 10,2015 in Glossary | 0 Comments

Expansionistic pricing is an exaggerated type of penetration pricing which involves setting extremely low prices geared toward establishing mass markets, presumably at the expense of other suppliers. Under this strategy, the product or service results in high price elasticity of demand, so that the adoption of a lower price may lead to a huge increase in sales volumes.

 

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