When Josh stopped at the convenience store for a drink, he noticed that in both the cooler and the fountain drinks the prices of all the soft drinks were identical. You could choose Coke, Pepsi, Dr. Pepper, Mountain Dew, or many others, but they were all the same price. This is an example of:
A) competitive parity pricing.
B) discount pricing.
C) prestige pricing.
D) market share pricing.

Question

Quizplus · Accepted Answer

Competitive parity pricing is a strategy where a company sets the prices of its products or services at a level similar to its competitors. In this scenario, the convenience store has priced all the soft drinks identically, regardless of the brand, which aligns with the concept of competitive parity pricing. This approach is often used to maintain a competitive position without initiating a price war.

When Josh Stopped at the Convenience Store for a Drink