How does an organization's competition affect its pricing strategy? Identify specific examples.
What factors differentiate a product and a service? How do these factors affect the marketing of products and services?
An organization surveys its competition to determine its pricing strategy. The most obvious example are supermarket prices. Stores survey one another to verify pricing, and base their own pricing off the market place. Not every supermarket wants to be the cheapest, but some strive for this and thus compete on price. Typically they will pick certain items: Coke 12 packs, Bud suitcases and confirm that they will be the cheapest or competitive during a set time period and run advertisements. Often the supplier is involved in setting prices.
Another example would be tiers of competition. In cigarettes ...
This solution outlines how an organization's competition affects its pricing strategy, and the factors that differentiate a product and a service. It describes how these factors affect the marketing of products and services. It includes a link and examples.