Question

In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. When it comes to pricing, Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge. Westin is using a _______ pricing strategy.

a. maximizing profits
b. target profit
c. target return
d. competitive parity
e. sales oriented

Answer 1

Answer: d. competitive parity

Competitive parity is a method of pricing when a company's pricing is focused on what its competitors pricing is for similar goods and services. And in this case Westin is doing competitive parity as its pricing is based on what is competitor crown plaza hotels pricing is

Explanation: