Firms using a competitive pricing strategy try to reduce the emphasis on price competition by matching other firms' prices and concentrating their own marketing efforts on the product, distribution, and promotion elements of the marketing mix.

Question

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Competitive pricing strategy involves setting prices based on competitors' strategies, prices, costs, and market offerings. By matching competitors' prices, firms aim to reduce the emphasis on price competition and instead focus on differentiating their products through other elements of the marketing mix such as product features, distribution channels, and promotional activities. This approach helps firms to compete more on value and less on price alone.

Firms Using a Competitive Pricing Strategy Try to Reduce the Emphasis