What strategy is often employed to increase market share?

The strategy of competitive pricing and promotional offers is often utilized to increase market share because it directly appeals to price-sensitive consumers and incentivizes purchases. By setting prices lower than competitors or offering temporary promotions, businesses can attract more customers who may have otherwise chosen to shop elsewhere. This pricing strategy can create a sense of urgency, encouraging consumers to buy now rather than later.

Additionally, promotional offers such as discounts, buy-one-get-one-free deals, or loyalty programs can enhance customer engagement and encourage repeat business. All these tactics increase the sales volume, which helps to expand a company's market share by bringing new customers on board while retaining existing ones.

Competitive pricing is effective in markets characterized by fierce competition, allowing businesses to establish a stronger presence and potentially create long-term customer loyalty. When implemented thoughtfully, these pricing strategies can significantly impact a company's ability to grow its market share in a sustainable way.