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Penetration Pricing
A pricing strategy aimed at entering a new market by setting a low price initially to attract customers and gain market share.
Escalator Clause
A section in a contract that provides for price increases if certain, specified conditions occur.
Loss-leader Pricing
A pricing strategy where a product is sold at a loss to attract customers, with the expectation they will make additional purchases of other items at regular prices.
Elastic Demand
Demand for which a given percentage change in price results in an even larger percentage change in quantity demanded.
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