Charging a deliberately low price to undermine competitors is known as?

Charging a deliberately low price to undermine competitors is referred to as destroyer pricing. This pricing strategy involves setting prices so low that competitors cannot sustain their business and are forced to either lower their prices or exit the market entirely. By doing so, the business aims to significantly increase its market share and potentially establish market dominance once competitors are eliminated or weakened.

Destroyer pricing is often viewed as an aggressive tactic, and while it can lead to short-term benefits, it may raise long-term sustainability concerns. It can attract consumers with lower prices but can also trigger price wars that ultimately harm the profitability of all businesses involved.

Given the nature of this strategy, other pricing methods do not share the same characteristics as destroyer pricing. Premium pricing focuses on establishing a high price to signify quality or exclusivity, psychological pricing leverages consumer perception to encourage purchases (like pricing something at $9.99 instead of $10), and value pricing sets prices based on the perceived value to the customer rather than strictly on cost.