Pricing Is a Highly Visible Component of a Firm's Marketing

Multiple Choice

Pricing is a highly visible component of a firm's marketing mix and an easy tool for obtaining a differential advantage over competitors. However, when competitors continually undercut each other to gain that advantage, it can lead to a price war that damages all companies involved. When firms have identical or very similar products and price information is readily available - for example, Coca-Cola and Pepsi - a common pricing approach to avoid price wars is:

A) competitive-parity pricing.
B) market-based pricing.
C) commodity pricing.
D) bargain pricing.