In ________ pricing, the firm bases its price largely on competitor's prices.
A) going-rate
B) auction-type
C) markup
D) target-return
E) perceived-value

Question

Quizplus · Accepted Answer

Going-rate pricing is when companies base their prices largely on their competitor's prices. They use the prices of their competitors as a benchmark and either match, exceed, or undercut them based on their strategy. This pricing strategy is most commonly seen in industries where there is a lot of competition, and customers have many options to choose from. This pricing strategy helps companies stay competitive and ensure their prices are in line with the market.

In ________ Pricing, the Firm Bases Its Price Largely on Competitor's