Question
Which of the following defines or is a characteristic of the "Follow-the-Leader" pricing strategy (select all that
apply)?
D Is best suited for smaller companies
This strategy can lead to price wars.
Grocery store chains often use this pricing strategy.
Involves matching the prices of the market leader
Answers
GPT-4o mini
The following statements define or are characteristics of the "Follow-the-Leader" pricing strategy:
- This strategy can lead to price wars.
- Grocery store chains often use this pricing strategy.
- Involves matching the prices of the market leader.
The statement "Is best suited for smaller companies" is not a defining characteristic of the "Follow-the-Leader" pricing strategy; it can be used by companies of various sizes, but it is often observed in larger firms that have a clear market leader.
- This strategy can lead to price wars.
- Grocery store chains often use this pricing strategy.
- Involves matching the prices of the market leader.
The statement "Is best suited for smaller companies" is not a defining characteristic of the "Follow-the-Leader" pricing strategy; it can be used by companies of various sizes, but it is often observed in larger firms that have a clear market leader.