Answer:
The correct word for the blank space is: competitive.
Step-by-step explanation:
Pricing strategies are methods companies use at the moment of setting the prices of their products. The most common pricing strategies are:
- Cost-plus pricing. Involves recognizing the production costs and adding a percentage of those costs which represents the profit of the firm.
- Competitive pricing. Implies establishing the price of a product similar to what competitors in the market have set.
- Value-based pricing. It requires setting the price of goods and services based on what consumers think the price should be.
- Price skimming. Involves pricing a product high at first and changing the price according to market fluctuations.
- Penetration pricing. Implies setting the price of a product low to wipe out competitors and raising it after they completely disappeared.