Competitive

• What is competitive pricing?

  Setting prices in line with rivals
• Why do supermarkets use competitive pricing?

  To attract more customers and increase sales
• Name two UK supermarkets that use competitive pricing.

  Tesco and Asda
• How does competitive pricing benefit low-cost airlines?

  It attracts price-sensitive customers
• What is the relationship between competitive pricing and market share growth?

  Competitive pricing can lead to increased market share
• Who are the target customers for competitive pricing?

  Price-sensitive customers with elastic demand
• What type of business positioning benefits from competitive pricing?

  Value for money or low-cost positioning
• What is a potential objective for a business using competitive pricing?

  To survive in a competitive market
• What is the first step in implementing competitive pricing?

  Conduct market research on rivals' prices
• Why must a business be aware of its costs when using competitive pricing?

  Profit margins are likely to be very tight
• What is a limitation of competitive pricing regarding profit margins?

  Profit margins per unit are very thin
• What might happen if a price war occurs due to competitive pricing?

  Rivals may charge lower than desired prices
• What should a business consider regarding sustainability in competitive pricing?

  Whether it can maintain low prices long-term
• How can sustained competitive pricing impact a brand?

  It may lead to perception issues for the brand
• What are the key aspects of competitive pricing?

  • Setting prices in line with rivals
  • Attracting price-sensitive customers
  • Conducting market research
  • Maintaining tight profit margins
  • Potential for price wars
  • Impact on brand perception