- A method of pricing in which the seller makes a decision based on the prices of its competition. Competition-driven pricing focuses on determining a price that will achieve the most profitable market share and does not always mean the price is the same as the competition, it could be slightly lower. Research is done in an attempt to eliminate the competition and it is important to accurately interpret communication signals in order to prevent a price war.
Determining how to profitably achieve the greatest market share without incurring excessive costs requires strategic decision making. As such, the focus of the firm should not solely be on obtaining the largest market share, but in finding the appropriate combination of margin and market share that is most profitable in the long run.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Predatory pricing — Competition law Basic concepts History of competition law Monopoly Coercive monopoly Natural monopoly … Wikipedia
Road pricing — is an economic concept regarding the various direct charges applied for the use of roads. The road charges includes fuel taxes, licence fees, parking taxes, tolls, and congestion charges, including those which may vary by time of day, by the… … Wikipedia
Consumer driven health care — Defined narrowly, consumer driven health care (CDHC) refers to health insurance plans that allow members to use personal Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), or similar medical payment products to pay routine… … Wikipedia
Consumer-driven health care — Health care in the United States Public health care Federal Employees Health Benefits Program Indian Health Service Medicaid Medicare Military Health System / TRICARE State Children s Health Insurance Program (SCHIP) Veterans Health… … Wikipedia
Dumping (pricing policy) — This article is about the economics term. For industrial relations and social justice issue, see Social dumping. For the tax avoidance term, see SUTA dumping. In economics, dumping is any kind of predatory pricing, especially in the context of… … Wikipedia
Supra competitive pricing — is pricing above what can be sustained in a competitive market. This may be indicative of a business that has a unique legal or competitive advantage, or possibly of anti competitive behavior that has driven competition from the market. An… … Wikipedia
Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… … Universalium
Energy policy of Canada — Canada is the 5th largest producer of energy in the world, producing about 6% of global energy supplies. It is the world s largest producer of natural uranium, producing one third of global supply, and is also the world s leading producer of… … Wikipedia
Software as a service — (SaaS, typically pronounced sass ) is a model of software deployment where an application is hosted as a service provided to customers across the Internet. By eliminating the need to install and run the application on the customer s own computer … Wikipedia
Voice over Internet Protocol — (VoIP, IPAEng|vɔɪp) is a protocol optimized for the transmission of voice through the Internet or other packet switched networks. VoIP is often used abstractly to refer to the actual transmission of voice (rather than the protocol implementing… … Wikipedia