Exclusivez,a leading jeweler,offers a pair of diamond earrings for $2000,a price that is 40 percent lower than that of its competitors.Exclusivez aims to use this strategy to drive its competitors out of business and become the market leader in diamond jewelry.This is an example of _____.

Question

Quizplus · Accepted Answer

Predatory pricing is a strategy where a company deliberately sets low prices to force competitors out of business and then increase prices later, once the competition is eliminated. This seems to be the strategy being followed by Exclusivez as it is offering the diamond earrings at a significantly lower price than its competitors, with the aim of driving them out of business and becoming the market leader.

Exclusivez,a Leading Jeweler,offers a Pair of Diamond Earrings for $2000,a