Which of the following best explains 'going rate pricing'?
A) Price is based on competitor prices.
B) Price is based on the amount of profit that should be realized.
C) Price is based on the importance of the customer to the supplier.
D) Fairly low prices for high quality offerings.

Question

Which of the following best explains 'going rate pricing'? 
A) Price is based on competitor prices. 
B) Price is based on the amount of profit that should be realized. 
C) Price is based on the importance of the customer to the supplier. 
D) Fairly low prices for high quality offerings.

Quizplus · Accepted Answer

Going rate pricing is when a price is based on competitor prices. It is a common pricing strategy in competitive markets where pricing decisions are influenced by the prices charged by rivals.

Which of the Following Best Explains 'Going Rate Pricing