Question

what is competitive pricing and how is it used? in 200 words and in own words please.

Answer 1

Competitive Pricing:

In pricing strategy competitive pricing is a concept where an organization considers its competitors price while setting price for its product or services. The drive here is the competition pricing rather than its own over heads of production cost.

The uses of competitive pricing are explained below:

1. The most important use of competitive pricing is capturing the market share by avoiding price competition.

2. In order to maintain the level of equilibrium competitive pricing is used.

3. While there are n number of similar products in the market, attracting customers can be done through competitive pricing.

4. Adopting the competitive pricing is a kind of price that is fairly simple with low risks.

5. Competitive pricing is the strategic based pricing which in most of the time can be accurate.

6. It provides opportunities to many start-ups to easily fix their price.

7. The idea of simplifying price try out can be done with this cost strategy for a short term business.