Commercial Applications

The pricing strategy involves charging according to what competitors are charging:

  1. Going rate pricing
  2. Cost plus pricing
  3. Penetrating pricing
  4. Skimming pricing

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Answer

Going rate pricing

Reason — Parity pricing, also known as 'going rate pricing' or competition based pricing, involves charging according to what competitors are charging. Many companies in an industry follow the price level set by the market leader.

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