Question

Which pricing strategy involves charging according to their competitors?

पर्याय

• Penetrating pricing

• Cost Plus pricing

• Skimming pricing

• Parity pricing

Answer 1

Parity pricing

Explanation:

Parity pricing, also known as going-rate or competitive pricing, is a strategic framework in which a company deliberately matches its price structure with the rates charged by its direct competitors. This strategy is quite prevalent in saturated markets with uniform products where price variations could result in a loss of market share, as opposed to internal methods like cost-plus or time-based models like skimming and penetration.