Pronunciation: [pɹˈa͡ɪs lˈiːdə] (IPA) 
The spelling of the word "price leader" consists of two simple words, each with a distinct pronunciation. "Price" is spelled like /praɪs/ in IPA, with the long "ai" sound pronounced as in "eye". On the other hand, "leader" is spelled as /ˈliːdər/, with a double "e" sound as in "Lee". Together, "price leader" is a commonly used term in business, referring to a company that sets the lowest price among its competitors.
A price leader refers to a company or organization that has a strong influence on the price level within a specific industry or market. It is a concept commonly observed in industries where a few dominant firms or one large market player holds a significant market share. The price leader sets the benchmark price for goods or services, which other competitors tend to follow.
In this context, a price leader can either set the highest price (price setter) or the lowest price (price follower) for a particular product or service, depending on market dynamics and the company's strategic approach. The price leader's actions are closely monitored by other market participants because they significantly impact market competitiveness and profitability.
When a price leader adopts a predatory pricing strategy by setting exceptionally low prices to gain a larger market share, it can pose a challenge for smaller competitors. On the other hand, a price leader with a premium pricing strategy may lead to higher market entry barriers for new players or limit the extent of competition in terms of price differentiation.
The actions and pricing decisions of a price leader can influence market dynamics, dominate competition, and shape consumer behavior. As a result, the strategies and pricing moves of a price leader are often studied and analyzed by industry experts and competitors to gain insights and remain competitive in the market.
The word "price leader" is a compound noun comprised of the words "price" and "leader".
The word "price" originated from the Latin term "pretium", which meant "value" or "worth". Over time, it entered Old French as "pris" and eventually evolved into the English term "price", referring to the amount of money required to purchase or obtain something.
The word "leader" has its roots in Old English, deriving from the word "lǣdere", meaning "one who leads" or "one who guiding others". It is related to the verb "lead", which refers to guiding or directing others.
When these two words are combined, "price leader" refers to a company or business that takes the initiative in setting the prices for a particular product or service in a market, influencing other competitors to follow suit.
