Predatory Pricing

Predatory Pricing : This means establishing merchandise prices to drive competition away from market place. It is a pricing strategy where large retailers sell goods and services at very low prices with an objective to reduce competition, thus causing small retailers to go out of the business. A retailer can, however, sell the same merchandise at different prices at different geographic location if the costs of sale or delivery are different. In Indian context, various government agencies exercise a strong influence on the price levels through legal and policy directives.