Competition-based pricing is
A) used when costs and revenues are secondary to competitors' prices.
B) not useful as a method of increasing market share.
C) not useful if the competing products are homogeneous.
D) not able to increase sales.
E) used when competing products are heterogeneous.

Question

Quizplus · Accepted Answer

Competition-based pricing involves setting prices based on what competitors are charging for similar products. This approach assumes that customers will compare prices across multiple options and choose the most affordable one. In some cases, the cost of production or revenue goals may take a backseat to the prices set by competitors in the industry. Therefore, option A is the best choice.

Competition-Based Pricing Is