XYZ Industries is in a business in which competition demands little variance in pricing so it prices its products to stay at the same level of business it has enjoyed in order to maintain price stability.This is known as
A) status-quo pricing.
B) target return on investment pricing.
C) profit maximization.
D) ground floor pricing.

Question

Quizplus · Accepted Answer

Status-quo pricing involves maintaining current prices to sustain a stable level of business in the face of little price competition. This strategy is effective when there is a small variation in pricing among competitors, as it minimizes the risk of losing sales to competitors while maintaining profitability. Target return on investment pricing involves setting prices based on the desired return on investment, profit maximization involves setting prices to maximize profits, and ground floor pricing involves setting low prices to gain market share. None of these options fit the given scenario as well as status-quo pricing.

XYZ Industries Is in a Business in Which Competition Demands