Final answer:
A retailer comparing actions against competitors to set goals is establishing competitive pricing objectives, aiming to achieve an advantageous market position. So the correct answer is option 4.
Step-by-step explanation:
When a retailer sets goals and objectives based on a comparison of its actions against its competitors, it is establishing competitive pricing objectives.
This stems from the idea that in a competitive market system, such as the free enterprise system prevalent in the United States, market structures are influenced by the level of competition, which also affects pricing strategies. Retailers who aim to set their prices strategically in relation to their competitors are working towards achieving an advantageous position in the market.
Setting competitive pricing objectives often involves analysis of competitors' prices, market demand, and the cost of production to ensure sustainable profitability and market share. By benchmarking against competitors, the retailer can identify areas where it needs to improve and set specific objectives to achieve a competitive advantage.