Price War for Dummies
noun
pronunciation: praɪs_wɑRWhat does Price War really mean?
Price war is a term used to describe a situation where two or more businesses engage in a fierce competition by lowering the prices of their products or services. Think of it as a battle where these companies try to attract more customers by offering lower prices than their rivals. Just like when you go to a store and see two different brands of cookies on sale, and you notice that one brand is cheaper than the other - that's a bit like a price war between those two cookie companies!
So, let's say there are two stores selling the same type of toy. Store A decides to lower the price of the toy to attract more customers. Now, Store B has a choice to make. Do they keep their prices the same and risk losing customers to Store A? Or do they lower their prices too, engaging in a price war to try and win back those customers?
During a price war, companies often keep lowering their prices, trying to undercut their rivals as much as possible. It can become a competition about who can offer the lowest price, rather than a competition about other important things like quality or customer service.
Price wars can be good for consumers because it means they can buy products or services at a cheaper price. However, price wars can also hurt businesses involved. They might struggle to make enough money because they're selling things at such low prices. It's a bit like a race to the bottom - who can sell for the lowest price, but who is also taking the biggest risk?
Overall, a price war is a fierce competition between businesses where they try to attract customers by lowering their prices. It's a bit like a battle where companies fight over who can offer the cheapest price. It can be good for consumers, but it can also be tough for the businesses involved.
Revised and Fact checked by Jack Taylor on 2023-10-28 15:49:21
Price War In a sentece
Learn how to use Price War inside a sentece
- Two grocery stores are lowering the prices of milk, eggs, and bread to attract more customers. This is called a price war.
- Two phone companies are reducing the cost of their plans to try and get more people to sign up with them. This is known as a price war.
- Two car dealerships in the same town are constantly offering discounts and promotions to sell more cars than their competitor. This ongoing battle to have the lowest prices is called a price war.
- Two online retailers are continuously lowering the prices of their products to outdo each other and attract more shoppers. This is a classic example of a price war.
- Two airlines are offering extremely low fares for the same route in order to win over more passengers. People often benefit from lower ticket prices during a price war between airlines.
Price War Synonyms
Words that can be interchanged for the original word in the same context.
Price War Hypernyms
Words that are more generic than the original word.