Asked by Desmond Teddy on Jul 21, 2024
Verified
Bariffs Inc.and Trell Inc.two major oil companies,are located directly across the street from one another.Bariffs lowers its price for regular unleaded oil by 5 cents,and Trell quickly follows suit.What pricing objective is Trell using?
A) Competitive pricing
B) Skimming pricing
C) Odd pricing
D) Penetration pricing
Competitive Pricing
A pricing strategy where a company sets its product or service prices based on the prices of competitors, aiming to provide more value to customers.
Odd Pricing
Pricing method using uneven amounts, which sometimes appear smaller than they really are to consumers.
Penetration Pricing
A pricing strategy where a product is set at a low initial price to quickly gain market share by enticing customers away from competitors.
- Understand the significance of competitive pricing and its effect on the behavior of the market.
Verified Answer
Learning Objectives
- Understand the significance of competitive pricing and its effect on the behavior of the market.
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