Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most at risk of being accused of ________.

Question

Quizplus · Accepted Answer

Predatory pricing involves intentionally setting prices below cost in order to drive competitors out of business. This is the strategy that Savings for You is employing in the scenario described.

Savings for You, a Discount Retail Chain, Is Highly Competitive