Question

Which of the following is true about competitive pricing? a. It is set by covering costs only. b. It is set by figuring out just how much a customer is willing to pay and pricing near that mark. c. It is at a medium level, somewhere in between extremes, using competitors’ prices as a starting point, and adjusting from there. d. It is set by covering costs and then adding some margin.

Answer 1

Answer: c. It is at a medium level, somewhere in between extremes, using competitors' prices as a starting point, and adjusting from there.

Explanation:

There is a lot of competition going on in most markets as this competition continues brands begin to look at what each other is doing to be able to beat themselves in the market. They understand that a good price and assured product will make them either loose or gain more clients and customers. This makes them focus on the price of each other and adjust or make out their own price from there.