Though confusing to customers, U. S. Cellular priced its bundles very similar to its competitor's prices. Which competitor-oriented pricing strategy did U. S. Cellular use in this example?

Question

Cantu

Social Studies

4 December, 14:35

Though confusing to customers, U. S. Cellular priced its bundles very similar to its competitor's prices. Which competitor-oriented pricing strategy did U. S. Cellular use in this example?

+4

Answers (1)

Know the Answer?

Skyler Wright · Answer 1

The pricing strategy used by U. S. cellular is called the "Competitive-parity method".

Explanation:

In using the competitive-parity method, a firm sets prices for its products or activities in line with how competitors are pricing similar products or activities.

It is a defensive strategy that a firm uses to avoid overspending and attain, at least, the same level of performance as a competitor.