Health Born Cereal Corp. wants to build its global sales volume quickly. It enters all markets at the lowest price possible it can charge, which undercuts the prices of all its competition. The company knows this might result in initial losses, but in a few years, it should be making substantial profits with a cost advantage over everyone else. This is an example of
A) experience curve pricing.
B) multipoint pricing.
C) market-based pricing.
D) dynamic pricing.
E) price skimming.

Question

Quizplus · Accepted Answer

Experience curve pricing involves setting low prices to quickly build sales volume, gain market share, and achieve cost advantages over competitors, even if it means incurring initial losses.