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Question
The pricing strategy involves charging according to what competitors are charging ______.
Options
Going rate pricing
Cost plus pricing
Penetrating pricing
Skimming pricing
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Solution
The pricing strategy involves charging according to what competitors are charging going rate pricing.
Explanation:
Going rate pricing, also known as competitive pricing, involves setting the price of a product based on the prices charged by competitors. This strategy ensures that a company’s prices align with the market and helps maintain competitiveness. It is commonly used in industries where products are similar and price competition is intense.
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