Firms using a(n)____________ pricing method set their prices relative to what other firms are charging.
A) improvement value
B) value-based
C) competitor-based
D) reference-based
E) cost-based

Question

Quizplus · Accepted Answer

Competitor-based pricing method involves setting prices based on what other firms are charging for similar products or services. This pricing method is effective in competitive markets where price is a significant factor in consumer decision-making. By setting prices relative to competitors, firms can ensure that their prices are competitive and attractive to consumers.

Firms Using A(n)____________ Pricing Method Set Their Prices Relative to What