Question

Diana owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diana. Diana decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diana implementing?

Answer 1

competitor-oriented pricing

Step-by-step explanation:

competitor-oriented pricing is a technique for valuing in which a producer's value is resolved more by the cost of a comparable item sold by an incredible contender than by contemplation of purchaser request and cost of generation; likewise alluded to as Competition-Based Pricing.

For instance: a firm needs to value another espresso producer. The company's rivals sell it at $25, and the organization thinks about that the best cost for the new espresso producer is $25. It chooses to set this very cost without anyone else item.