In many high-end resort markets,Westin hotels compete directly with Crown Plaza hotels.Each firm weighs the comparative advantages and disadvantages of their 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

Competitive parity pricing strategy involves setting prices based on competitors' prices. In this case, both Westin and Crown Plaza are considering each other's prices to determine their own pricing strategy, making it a competitive parity strategy.

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