noun
- the practice of setting a price that is too low, especially below market value or cost
Usage: business; economics
Examples
- The company’s underpricing of its products led to significant losses.
- Underpricing in the housing market can indicate economic distress.
- The startup’s underpricing strategy helped them gain market share quickly.
- Investors were concerned about the underpricing of the IPO.
- The restaurant’s underpricing made it popular but unprofitable.
- Underpricing can be a deliberate business strategy or an error in judgment.