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Question
It is also known as ‘going rate pricing’ or competition based pricing.
Options
Skimming
Parity pricing
Penetration pricing
Cost plus pricing
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Solution
Parity pricing
Explanation:
Under this pricing strategy, a business firm adjusts its own price policy to the general pricing structure in the industry. It involves charging according to what competitors are charging. Many companies in an industry follow the price level set by the market leader. This strategy is also known as 'going rate pricing' or competition-based pricing.
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RELATED QUESTIONS
______ is the most common method used for pricing.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
Factors which do not influence price determination is ______.
The main aim of penetrating pricing is to ______.
Give two conditions under which parity pricing is desirable.
Mention the advantages of cost plus pricing.
"Competition based pricing is ideal for non-branded products." Comment.
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