price leader

price leader definition - business

price leader

  1. A business whose pricing decisions heavily influence the pricing decisions of its competitors. Price leadership is most common in an industry dominated by a large firm. See also oligopoly.
  2. A business that offers the best price in a given market. For example, Wal-Mart is a grocery price leader in many of the markets in which it operates. Also called low-price leader.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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