In ________, the firm bases its price largely on competitor's prices.
A) going-rate pricing
B) auction-type pricing
C) markup pricing
D) target-return pricing
E) perceived-value pricing

Question

Quizplus · Accepted Answer

Going-rate pricing is the strategy of setting prices based on the prices of competitors. This approach is common in markets characterized by strong competition, where customers have many options to choose from and prices tend to be relatively uniform across sellers. By pricing their products similarly to rivals, firms can avoid being perceived as too expensive or too cheap compared to other options in the market.

In ________, the Firm Bases Its Price Largely on Competitor's