Question

if a firm prices low worldwide in an attempt to build global sales volume as rapidly as possible, even it this means taking large losses initially, what kind of strategy is it pursuing?

Answer 1

Answer: Experience curve pricing

Explanation: The experience curve pricing principle aims to explain the relationship between the unit price of production and marketing and the experience possessed by the marketing and production company or firm on that product. In a bid to acquire more depth in experience in production and marketing, forms tend to sell at prices below the average selling price which may culminate in losses in the early stage

However, with increase in experience in the production and marketing of the product attained as a result of cumulative production, the unit production cost begins to decline.