In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. Each firm weighs the comparative advantages and disadvantages of its offerings to determine whether to price above, equal to, or below the other hotel. In these markets, the hotels are using a _______________ pricing strategy.
A) maximizing profits
B) target profit
C) target return
D) competitive parity
E) sales oriented

Question

Quizplus · Accepted Answer

The hotels are using the competitive parity pricing strategy, which involves setting prices at the same level as competitors to avoid losing market share. Both the Westin and Crown Plaza hotels are directly competing with each other in high-end resort markets, so they would likely set their prices to be on par with each other.

In Many High-End Resort Markets, Westin Hotels Compete Directly with Crown