What marketing strategy involves pricing products below market value to attract customers?

The marketing strategy that involves pricing products below market value to attract customers is commonly referred to as lead pricing. This strategy is designed to create an appealing entry point for consumers, thereby drawing them to a particular product or service. By setting prices lower than competitors, a company aims to increase customer interest, boost sales volume, and ultimately gain market share.

Lead pricing is especially effective in attracting price-sensitive consumers or those looking to try out a new brand or product. This approach is often used in competitive markets where multiple similar products exist, and businesses are seeking to differentiate themselves by appealing to bargain hunters.

Other strategies such as market development and market penetration also focus on growth; however, they do not specifically emphasize pricing below market value as a method to attract customers. Local marketing typically targets regional consumers but does not inherently involve pricing strategies aimed at undercutting market prices.