Differentiate Between Multipoint Pricing and Experience Curve Pricing Strategies

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The Answer is Multipoint pricing refers to the fact a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market. Aggressive pricing in one market may elicit a competitive response from a rival in another market. Many firms pursuing an experience curve pricing strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially. Such a firm believes that in several years, when it has moved down the experience curve, it will be making substantial profits and have a cost advantage over its less aggressive competitors.

Differentiate Between Multipoint Pricing and Experience Curve Pricing Strategies

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