Which of the following defines or is a characteristic of the "Follow-the-Leader" pricing strategy (select all that

Question

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

Answer 1

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.