Which pricing strategy is adopted by a company that sells its product for N200 when...
MARKETING
WAEC 2023
Which pricing strategy is adopted by a company that sells its product for N200 when the prevailing market price for same product is N150?
- A. Psychological pricing
- B. Skimming pricing
- C. Competitive pricing
- D. Penetrating pricing
Correct Answer: C. Competitive pricing
Explanation
The pricing strategy adopted by a company that sells its product for ?200 when the prevailing market price for the same product is ?150 is competitive pricing. Competitive pricing involves setting the price of a product or service based on the prices charged by competitors in the market. The company sets its price at a similar or slightly higher level compared to competitors' prices to remain competitive and attract customers. In this case, the company is pricing its product at ?200, which is aligned with the prevailing market price of ?150, indicating a competitive pricing strategy.
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