A 20ounce bottle of CocaCola and a 20ounce bottle of Pepsi are the same price in your local convenience store and, therefore, you are forced to make a choice based on other factors, such as taste or brand preference. This pricing tactic is an example of matching the competition.

Question

A 20­ounce bottle of Coca­Cola and a 20­ounce bottle of Pepsi are the same price in your local convenience store and, therefore, you are forced to make a choice based on other factors, such as taste or brand preference. This pricing tactic is an example of matching the competition.

Quizplus · Accepted Answer

The pricing tactic of matching the competition means that a company sets its prices equal to those of its competitors in order to remain competitive. In this case, both Coca-Cola and Pepsi are priced the same, which is an example of matching the competition.

A 20­ounce Bottle of Coca­Cola and a 20­ounce Bottle of Pepsi

A 20ounce Bottle of CocaCola and a 20ounce Bottle of Pepsi