What pricing method involves setting prices at a similar or lower level compared to rivals?

Competitor pricing is a strategy where businesses set their prices based on the prices of their competitors. This approach is often used in markets where several companies offer similar products or services, allowing a business to remain competitive. By pricing their offerings at a similar or slightly lower level than rivals, businesses aim to attract price-sensitive customers and increase market share. This method relies heavily on understanding the pricing strategies of competitors and adjusting accordingly to maintain a competitive edge.

Psychological pricing focuses on setting prices that have a psychological impact, such as pricing a product at $9.99 instead of $10. Differential pricing involves charging different prices to different customers based on various factors, while promotional pricing is a temporary reduction in price to boost sales. While these other methods have their own unique benefits, they do not directly involve aligning prices with those of competitors, which is the essence of competitor pricing.