If a firm prices low worldwide in an attempt to build global sales volume as rapidly as possible, even if this means taking large losses initially, what kind of strategy is it pursuing?
A)Experience curve pricing
B)Multipoint pricing
C)Economy pricing
D)Predatory pricing
E)Premium pricing

Question

Quizplus · Accepted Answer

Many firms pursuing an experience curve pricing strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially. Such a firm believes that in several years, when it has moved down the experience curve, it will be making substantial profits and have a cost advantage over its less-aggressive competitors.

If a Firm Prices Low Worldwide in an Attempt to Build