By RackNap
Competitive pricing: Set prices based on competitors' strategies and customer willingness to pay, using research from established businesses when starting out.
Not for the long term
Competitor-based pricing may be useful initially, but changes in competitors' strategies can impact its effectiveness.
Chances of copying competitor errors
Relying on competitors may result in replicating their mistakes, potentially harming future profits.
Unable to create differentiation
Adopting the same pricing strategy as competitors hinders brand distinctiveness and customer perception of value.