Commercial Applications
It is also known as 'going rate pricing' or competition based pricing.
- Skimming
- Parity pricing
- Penetration pricing
- Cost plus pricing
Answer
Parity pricing
Reason — Under parity pricing, 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. Therefore, it is also known as 'going rate pricing' or competition based pricing.
Related Questions
Berrylicious is a very famous wafer brand among children, currently in its growth stage. Which of the following statements is/are correct about this stage?
(1) Competition is virtually absent.
(2) Marginal producers are forced to go out of the market.
(3) Promotional expenditure remains high.
(4) Sales may decline rapidly.
- Only 2
- Only 2 and 3
- Only 1 and 4
- Only 1
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- Branding
- Pricing
- Promotion
- Labelling
Direct selling eliminates the need for intermediaries and can result in higher profit margins for the manufacturer.
- True
- False
This marketing component is most likely to be standardized ……………
- Brand
- Price
- Advertising
- Distribution