In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. When it comes to pricing, Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge. Westin is using a ________ pricing strategy.
A)maximizing profits
B)target profit
C)target return
D)competitive parity
E)sales oriented

Question

Quizplus · Accepted Answer

Westin is using a competitive parity pricing strategy, in which they match the pricing of their direct competitor, Crown Plaza hotels, in order to remain competitive in the high-end resort market. This allows Westin to maintain market share and avoid losing customers to Crown Plaza due to pricing differences.

In Many High-End Resort Markets, Westin Hotels Compete Directly with Crown