While not a direct loss to a venture, underpricing can represent a significant opportunity cost to the venture's owners.

Question

Quizplus · Accepted Answer

Underpricing may lead to missed opportunities to generate higher profits and may also undermine the perception of value associated with the venture's products or services. This, in turn, can affect the venture's ability to attract and retain customers, generate positive word-of-mouth, and build a strong brand image. Thus, while the venture may not incur a direct financial loss from underpricing, it may face a significant opportunity cost in terms of lost revenue and market share.

While Not a Direct Loss to a Venture, Underpricing Can