Competitive Pricing
Setting prices at similar levels to competitors.
Real World
Budget supermarkets Aldi and Lidl price many own-brand staples at or just below Tesco and Sainsbury's to remain competitive, relying on store experience and quality perception to differentiate.
Exam Focus
When analysing competitive pricing, always discuss non-price competition as the main way firms differentiate — price alone rarely secures long-term advantage.
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