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A hairdresser charges the same price for haircuts as two other hairdressers in the local area - OCR - GCSE Business - Question 2 - 2021 - Paper 1
Question 2
A hairdresser charges the same price for haircuts as two other hairdressers in the local area. Which pricing method is the hairdresser using? A. Competitor pricing B... show full transcript
Worked Solution & Example Answer:A hairdresser charges the same price for haircuts as two other hairdressers in the local area - OCR - GCSE Business - Question 2 - 2021 - Paper 1
Step 1
Which pricing method is the hairdresser using?
Answer
The hairdresser is using Competitor pricing. This method involves setting prices based on what competitors are charging for similar services. Since the hairdresser charges the same price as two other hairdressers in the area, it indicates a strategy of aligning with competitor pricing to remain competitive in the market.