Competition-based pricing is important if competing products are similar and the organization is serving markets in which price is the crucial variable of the marketing strategy.

Question

Quizplus · Accepted Answer

Competition-based pricing is most appropriate when competing products are similar and price is an important factor in the customer's buying decisions. In this strategy, the organization sets its prices based on the prices of its competitors. This allows the organization to remain competitive and attract customers who are price-sensitive.

Competition-Based Pricing Is Important If Competing Products Are Similar and the Organization