Which pricing method sets price based on competitor pricing without considering company costs or demand?
ATarget Return Pricing
BGoing-Rate Pricing
CValue-Based Pricing
DCost-Plus Pricing
Explanation
* Going-Rate Pricing bases prices largely on competitors’ prices, paying less attention to own costs or demand.
* Widely used in oligopolistic markets where price changes trigger immediate competitive moves.
* It helps maintain industry price stability and avoids price wars.
Exam Relevance
- Topic: Pricing Strategy
- Subtopic: Competition-Based Pricing

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