Using the competitive match pricing process, companies establish their prices by comparing them to those of their competitors. This strategy is frequently employed in markets where consumers' decisions are largely influenced by price and where products are quite similar to one another.Example: Milk cartons at a grocery shop cost $2.99. The type and size of milk that a rival down the street sells for $2.89. To equal the pricing of its competitor, the first grocery store would probably drop to $2.89.Advantages: It can assist companies in attracting and keeping price-conscious clients. It can assist companies in holding onto market share in a cutthroat sector. It can assist companies in avoiding pricing conflicts with other companies.Disadvantages:Lower profit margins for companies may result from it.Businesses may find it challenging to set themselves apart from competitors as a result.It might be challenging to keep up with and react to price adjustments made by competitors.All things considered, companies that operate in highly competitive industries may find success with the competitive match pricing model. However, before putting this method into practice, it is crucial to carefully weigh its advantages and disadvantages.
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