Question

If the quality differences of similar products are mostly imperceptible to the average consumer's eyes, which of the following will most likely play a major role in influencing the decisions of purchasers?

Answer 1

The correct answer is proce of competing products.

Step-by-step explanation:

Pricing based on competition is the establishment of a price at the same level of competition. This method is based on the idea that competitors have already elaborated their pricing strategy. In any market, many companies sell the same or similar products, and, according to the classical economy, the price of these products should, in theory, already be in equilibrium (or, at least, in a local equilibrium). Therefore, by establishing the same price as the competition, a newly created company can avoid the trial and error costs of the pricing process.