Competition-based pricing is important if competing products are similar and the organisation is serving markets in which price is the crucial variable of the marketing strategy.

Question

Quizplus · Accepted Answer

Competition-based pricing takes into account the prices of competing products and is suitable when price is the primary factor in the marketing strategy. This is particularly important when the organisation is serving markets where customers have a lot of alternatives to choose from and may switch to alternative products if the price is not right.

Competition-Based Pricing Is Important If Competing Products Are Similar and the Organisation