A company will place its major emphasis on competitors' prices in which of the following approaches to pricing?
A) sealed- bid pricing
B) going rate pricing
C) break- even pricing
D) value- based pricing
E) economic value pricing

Question

Quizplus · Accepted Answer

In going rate pricing, a company sets its price based on the prices of its competitors. Therefore, the major emphasis is placed on competitors' prices. Sealed bid pricing focuses on bidding for specific projects, break-even pricing considers the company's costs, value-based pricing focuses on the perceived value to the customer, and economic value pricing balances the benefits of the product with the cost to produce it.

A Company Will Place Its Major Emphasis on Competitors' Prices