A pricing strategy based on what the competition is charging is known as ________ -based pricing.
A)cost
B)demand
C)competition
D)supply

Question

Quizplus · Accepted Answer

Competition-based pricing involves setting prices based on what competitors are charging for similar products or services. This strategy is useful when the market is already established and there are other competitors already selling similar products. By pricing similarly to competitors, businesses can avoid pricing themselves out of the market or driving away potential customers. However, it is important to consider other factors such as the business's own costs and the value it provides to customers when determining prices.

A Pricing Strategy Based on What the Competition Is Charging