the legality of introductory pricing

what does Introductory pricing mean?is it legal or illegal?

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Expert Solution

Introductory pricing is the re-pricing of the products and pricing of the new products in the market to attract customers to the product in the market (Huang & Justin, 2018). This aims at enhancing new massive customer entry in the market. The strategy adopted by the sellers may involve reducing the prices in the initial stages to alleviate market share and later increasing the prices gradually to earn profit from the sales made.

The change in the prices ensures the manufacturers make a profit after the grace period, this amnesty period given is only meant to familiarize the buyers with the products, therefore, determining their consumer preference and taste affective. The introductory pricing is legal since companies are allowed to come up with their own strategies to market their products. The quoting of other companies’ pricing is illegal and market price should be determined by the demand and supply needs, and the expense of production incurred. Therefore, price-fixing becomes whereby an agreement is arrived at by several companies.

Introductory pricing is the re-pricing of the products and pricing of the new products in the market to attract customers to the product in the market (Huang & Justin, 2018).

frankdube answered 2 years ago

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