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In working out your plan for pricing your products, you decide to keep your prices at about the same level as similar businesses in adjoining states. This could best be described as a _____ approach.

a) Cost-plus pricing
b) Competitive pricing
c) Value-based pricing
d) Market-oriented pricing

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User Schwa
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Final answer:

The approach of keeping your prices at about the same level as similar businesses in adjoining states is best described as Competitive pricing.

Step-by-step explanation:

In working out your plan for pricing your products, and deciding to keep your prices at about the same level as similar businesses in adjoining states, this approach is best described as b) Competitive pricing. Competitive pricing involves setting the price of a product or service based on what the competition is charging. This method relies on the understanding of the competitors' prices and positioning one's own product price approximately on the same level as them. This approach is different from cost-plus pricing, where a fixed amount or percentage of the cost is added to the production cost to make a profit; value-based pricing, which sets the price based on the perceived value to customers rather than actual costs; and market-oriented pricing, which includes broader factors such as customer demand, perceived value, and competition, without necessarily pricing at a similar level to competitors.

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User Graziela
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