A heating-oil dealer decides to charge prices 10 percent above the market because it offers 24-hour service, has scheduled deliveries, and has a superior oil-burner maintenance program. This illustrates a competition-based price strategy.

Question

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The dealer is setting prices based on the competition, specifically by charging 10 percent above the market price. This is a competition-based price strategy.

A Heating-Oil Dealer Decides to Charge Prices 10 Percent Above