Competitor-orientated pricing may take any of three forms. Which of the following is not one of these forms?
A)Where companies set prices to average industry costs
B)Where firms follow the prices charged by leading competitors
C)Where contracts are awarded through a competitive bidding process
D)Where producers take the going rate price

Question

Quizplus · Accepted Answer

Competitor-oriented pricing involves setting prices based on how competitors price their products, rather than focusing on industry costs. Options B, C, and D all relate to competitor-based strategies, whereas A (setting prices to average industry costs) is more aligned with a cost-based pricing strategy, not specifically competitor-oriented pricing.

Competitor-Orientated Pricing May Take Any of Three Forms