Destiney is opening Destiney's Soul Food Restaurant.She has determined what it costs to produce each dish on the menu,how much overhead she must include in the menu item price,and other costs associated with producing each meal.After doing these computations,she visits several neighboring restaurants and reviews their menus.She returns to her business and prices her menu items similar to the competitors' prices.What type of pricing strategy is she using?

Question

Quizplus · Accepted Answer

Destiney is using a competition-based pricing strategy where she is pricing her menu items similar to her competitors' prices after reviewing their menus. She is not considering demand, cost, or markup in her pricing strategy.

Destiney Is Opening Destiney's Soul Food Restaurant