Bob is the president of his own new marketing research firm. He wants to grow his business as a quality full-service marketing research firm. To do this, he is purposely bidding low on projects and he plans to lose money for the first two years of operation. This is most likely _____.

Question

Responses

a way to use professional respondents
a way to use professional respondents

an example of low-ball pricing
an example of low-ball pricing

an ethical business practice
an ethical business practice

a scheme to underpay data collectors
a scheme to underpay data collectors

Answer 1

The most appropriate response to describe Bob's strategy is:

an example of low-ball pricing

Low-ball pricing is a pricing strategy where a firm sets a price significantly lower than competitors to attract customers, often with the intention of gaining market share or establishing a presence in the market, even if it results in initial losses.