Question

Rhonda is a procurement officer for the government and needs to hire a new plumbing company that she could pay a fixed price per year to get their services on demand. she sends out this request to a plumbing website where multiple plumbing firms respond with their prices. rhonda will choose the lowest price offer. this is an example of what?

demand-based pricing
value-based pricing
price leader/ follower competitive bid
comparative cost pricing

Answer 1

comparative cost pricing

Step-by-step explanation:

In comparative cost pricing strategy different prices charged by different seller is presented to buyer. The buyer has freedom to choose any price option based on comparative analysis of price.

In the question given above plumbing firms have given their prices to Rhonda and she chose lowest price which can be explained by comparative cost pricing.