Charging someone less than they are willing to pay is a practice referred to as
A)minimal pricing.
B)price skimming.
C)survival pricing.
D)dumping.
E)underpricing.

Question

Quizplus · Accepted Answer

Underpricing is the practice of charging less than what the customer is willing to pay. It can be used as a promotional tactic to attract new customers or a competitive strategy to gain market share. However, it can also lead to devaluing the product or service and reduce profitability in the long run. Therefore, it should be used judiciously. The other options, such as price skimming, survival pricing, and dumping are different pricing strategies that do not involve charging less than what the customer is willing to pay.

Charging Someone Less Than They Are Willing to Pay Is