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GCSE Business · key term
Setting prices based on the prices rivals charge for similar products, usually at or close to their prices.
Used by AQA and Edexcel
Paper 2
Revise: Pricing StrategiesCompetitive pricing means setting prices based on what rival businesses charge for similar products, usually at or close to their prices. It is useful where customers can compare alternatives easily, such as everyday groceries or petrol.
Specification 2.2.2 · Paper 2
Setting prices in relation to competitors’ prices.
Revise: Pricing StrategiesWith competitive pricing, a business bases its prices on those charged by rivals, often matching or undercutting them. This is useful when customers see competing products as similar and can easily switch between sellers.
Do not confuse competitive pricing, a method, with the degree of competition, a factor influencing the choice of method.
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