For which of the following products is a seller most likely to use a going-rate pricing strategy?
A)Sports cars
B)Wedding apparel
C)Whole milk
D)Designer furniture

Question

Quizplus · Accepted Answer

A going-rate pricing strategy involves setting prices based on the prices charged by competitors in the market. Whole milk is a commodity product, which means that there are many suppliers and buyers in the market, and there is little differentiation between brands. As a result, milk sellers are likely to use a going-rate pricing strategy to stay competitive and maintain their market share. In contrast, sports cars and designer furniture are luxury goods, and wedding apparel is typically customized or tailored for individual customers, making them less likely to be priced based on market rates.

For Which of the Following Products Is a Seller Most