ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increase selling prices
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Keep selling prices the same as before the economic downturn
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Lower selling prices
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Copy the selling prices of rivals
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Detailed explanation-1: -1. Competition-Based Pricing Strategy. Competition-based pricing is also known as competitive pricing or competitor-based pricing. This pricing strategy focuses on the existing market rate (or going rate) for a company’s product or service; it doesn’t take into account the cost of their product or consumer demand.
Detailed explanation-2: -Penetration pricing is a strategy used by businesses to attract customers to a new product or service by offering a lower price initially. The lower price helps a new product or service penetrate the market and attract customers away from competitors.
Detailed explanation-3: -Pricing strategies are the different approaches that businesses take to figure out what the cost of their goods and services should be. To choose the appropriate pricing strategy, companies consider factors like current product demand, cost of goods sold, consumer behavior, and market conditions.
Detailed explanation-4: -Cost-plus pricing. Calculate your costs and add a mark-up. Competitive pricing. Set a price based on what the competition charges. Price skimming. Set a high price and lower it as the market evolves. Penetration pricing. Value-based pricing.