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Question
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
Options
Skimming pricing
Parity pricing
Cost plus pricing
Penetrating pricing
Solution
Parity pricing
Explanation:
Parity pricing, also known as going rate pricing or competitive pricing, involves setting prices based on competitors' prices. In this strategy, a business firm aligns its pricing policy with the industry's general pricing structure to remain competitive and avoid price wars.
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