Firms using a ____________ 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 is a method in which a firm sets its prices relative to what other firms are charging. This means that the company uses its competitor’s prices as a benchmark and adjusts its prices accordingly. This method is especially useful in industries where customers have many options, and price is a significant factor in their decision-making process. However, it may not be the best choice for firms that want to differentiate themselves from their competitors.

Firms Using a ____________ Pricing Method Set Their Prices Relative