Which of the following is a weakness associated with competitor-oriented pricing?
A)It is risky where a firm's cost position is weaker than its competitors
B)It lets competitors dictate prices, therefore a loss of reputation as a market leader may emerge
C)It doesn't take into account economic conditions that may affect pricing decisions
D)It is too simplistic and easy to use

Question

Quizplus · Accepted Answer

Competitor-oriented pricing relies heavily on the pricing decisions of competitors. If a firm's cost position is weaker than its competitors, it may not be able to sustain profitability by matching competitor prices. This weakness may lead to a race to the bottom, resulting in lower profitability for all firms involved.

Which of the Following Is a Weakness Associated with Competitor-Oriented