Firms using a(n)_______ pricing method set their prices relative to what other firms are charging.
A) improvement value
B) value-based
C) cost-based
D) competition-based
E) reference-based

Question

Quizplus · Accepted Answer

Competition-based pricing method sets the prices of a firm's products or services in relation to what competitors are charging. This method requires comparative analysis of the competition's price and the firm's product quality. By examining what the competition is charging, a firm can adjust its prices to maintain a competitive edge. Therefore, competition-based pricing is the most appropriate choice.

Firms Using A(n)_______ Pricing Method Set Their Prices Relative to What