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Question
It is also known as 'going rate pricing' or competition based pricing.
Options
Skimming
Parity pricing
Penetration pricing
Cost plus pricing
Solution
Parity pricing
Explanation:
Under this pricing strategy, 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. Many companies in an industry follow the price level set by the market leader. This strategy is also known as 'going rate pricing' or competition-based pricing.
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