when competitors agree to maintain prices at a certain level, this is called course her

How do you price your product below your competitors'price?

Mar 06, 2018 · See Page 1. Question 6 1 / 1 pts When competitors agree to maintain prices at a certain level, this is called insider trading. Correct! price fixing. collusion. price gouging. The answer is in Section 2.5 Anticompetitive Practices in Introduction to Business Ethics. Question 7 1 / 1 pts The idea that corporations can be moral agents holds that ...

What is competitive pricing and how does it work?

Oct 30, 2018 · Score for this quiz: 12 out of 12 Question 1 1 / 1 pts When competitors agree to maintain prices at a certain level, this is called insider trading. Correct! price fixing. collusion. price gouging. insider trading .

What happens when competitors agree to restrict competition?

Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor. When purchasers make choices about what ...

What are the factors affecting competition based pricing strategy?

This is where setting prices according to the competitors becomes one of the most popular pricing strategies, also known as competitive pricing strategy. You have three choices—price your product lower, higher, or same as your competitors:: 1. If you’re planning to set the price above the price of your competitor, then you’d need to bring ...

What is competitive pricing strategy?

This is where setting prices according to the competitors becomes one of the most popular pricing strategies, also known as competitive pricing strategy. You have three choices—price your product lower, higher, or same as your competitors:: 1. If you’re planning to set the price above the price of your competitor, ...

What factors are considered when setting prices?

Some of the factors that companies consider when setting prices are costs, competition, and price sensitivity. In order to ensure sustained profitability, firms have to set a price that: covers the production cost, contributes to company overheads costs, and delivers suitable profits. Many competitors are eschewing the various pricing models ...

Why do sellers enter the market at a lower price point?

Sellers enter the market at a lower price point to generate demand and a consumer base and then increase prices once they are established.

What is cost plus pricing?

Cost-plus pricing strategy is one of the simplest methods of determining a price for your product. In this strategy, a prefixed profit margin is added to the total cost of the product which becomes your selling price. This strategy is not always the best way to establish the right price for your product as it is often determined with minimum research and does not consider consumer demand or competitor price strategies.

Why do businesses set prices?

A business can set a price to maximize profitability on each unit sold or on the overall market share. It can set a price to stop competitors from entering the market, or to increase its market share, or simply to stay in the market. In fact, pricing is one of the most important components when it comes to creating marketing strategies.

Why is pricing important?

In fact, pricing is one of the most important components when it comes to creating marketing strategies. The price is one of the first things that a consumer notices about a product and is one of the deciding factors when it comes to their decision to buy it or not. With the rise in e-commerce sales, and the friction-less comparison shopping ...

How to determine if price cuts will even impact your business?

You can do this by talking to your customers, doing market research, calculating your customer loyalty and auditing your marketing strategies . 1. Talk to Your Customers. Pick up the phone or send out an email and talk to your customers.

What is price segmentation?

Price segmentation is a way of charging customers differently for products and services, depending on which segment they are in . This can include student prices, senior discounts or coupons aimed at specific customers based on VIP status or their location. If this is possible in your niche market, this is a good way of lowering prices for competing market segments, while keeping overall prices the same.

Why is it important to differentiate your product?

As a rule of thumb, it is more effective for sales to concentrate on customer experience, your overall service, the quality of your products and ensuring that you are exceeding the expectations of your customers.

How to get more customers?

1. Talk to Your Customers. Pick up the phone or send out an email and talk to your customers. Touching base with your customers, seeing what they feel about your prices and why they chose you over possibly less expensive competitors, can yield great insights. 2.

What is a detractors customer?

Detractors are those customers who are likely to not recommend your business and quite possibly could do the opposite. Passives are those customers who are neutral or indifferent about your business. Promoters are your loyal customers who trust and recommend your brand. 4.

What are some free survey tools?

There are a host of free survey tools such as Google Forms and Survey Monkey, that allow you to get valuable data into not only what your customers are thinking, but the market in general.