Competitor indexing

Competitor indexing is a price setting technique used by marketers. Generally, it involves using the price of competitors' products in determining the price of your own products.

Variations of this strategy include:

  • matching competitors price
  • setting price at an amount above competitors' price (say $5 more)
  • setting price at an amount below competitors' price (say $4 less)
  • setting price at a percentage above competitors' price (say 3% more)
  • setting price at a percentage below competitors' price (say 10% less)
  • setting price within a range of the competitors' price (say no more than 5% more and no less than 8% less than competitors price)

This strategy is typically used by fringe firms, in an industry with one or two dominant companies (in fact, it is sometimes referred to as the "follow the leader strategy").

Its main advantage is ease of use. Extensive marketing research and statistical analysis are not required. Price research is as simple as going shopping. The main disadvantage is that it is purely reactive. You cannot use price as a variable when constructing a marketing mix : it becomes a constant over which the firm has no control.

See also : Pricing, marketing, marketing mix

List of Marketing TopicsList of Management Topics
List of Economics TopicsList of Accounting Topics
List of Finance TopicsList of Economists


In the News

New Bay Bridge.org
"This site illustrates and describes every phase of the new East Span construction"of the San Francisco-Oakland Bay Bridge. Includes articles and photo galleries about all aspects of the construction process, individuals involved in the project, and history of the original bridge. Project drawings, primary documents, links to historical photos, study materials for middle school, glossary of bridge building terms. New material will be added as the construction proceeds. From the California Alliance for Jobs.

University of California (UC): Hurricane Katrina Aftermath and Recover
UC campuses, medical centers, and national laboratories "are working to identify the personnel [and] expertise ... to support the immediate clinical and public health emergency needs, as well as the long-term health recovery efforts, in the Gulf Coast region."Locate campuses, labs, and UC experts who can help with "issues related to natural disaster detection, preparedness, infrastructure reconstruction, mental health and other relief efforts."Includes information for affected students.

Temporary Improvement Of Tumor Blood Flow Can Improve Chemotherapy, St
A treatment for neuroblastoma that lands a one-two punch works best when the second punch is timed to take maximum advantage of the first one, according to recent results. The finding holds promise for improving neuroblastoma treatment by using the drug bevacizumab to block VEGF, a protein that stimulates blood vessel growth in tumors and then following with the chemotherapy drug topotecan, which depends on blood vessels to penetrate the tumor and kill the cancer cells.

Pets as Presents: Planning Makes All the Difference
This article outlines considerations for giving pets to children as gifts. Includes suggestions for specific age groups, planning, and responsibilities. From the American Society for the Prevention of Cruelty to Animals (ASPCA). The ASPCA also offers pet safety tips for the holiday season .

Cowardly Lion Suit on eBay: $700K
Somebody forks over $700,000 on eBay for the original costume worn by Bert Lahr in The Wiz -- it's the only one from the flick out there for sale (and it's rumored to be made of real lion pelts). Who'd rather buy an apartment for that kind of dough? In Table of Malcontents.

Brain Morphing Technology Simplifies The Surgical Treatment For Moveme
A system that morphs brain images can significantly simplify a neurosurgical technique called deep brain stimulation (DBS) that is gaining popularity in the treatment of movement disorders, including tremor, rigidity, stiffness and slowed movement, caused by a variety of neurological conditions ranging Parkinson's to dystonia to multiple sclerosis to obsessive-compulsive disease.

Doctors Warn: Do Not Rely Only On What Young Athletes Say When Managin
When it comes to managing concussions in sports, relying only on an athlete's self report of symptoms is inadequate and likely to result in under-diagnosing the injury and the athlete unsafely returning to play following the concussion, warn doctors at the University of Pittsburgh Medical Center Sports Medicine Concussion Program. Along with assessing symptoms, the doctors stress, using computer-based neurocognitive function testing is crucial for accurate, objective evaluation of concussion.

Purdue Biologists Clarify How A Cellular 'Spacecraft' Opens Its Airloc
Scientists have a tough time visualizing the tiny hatchways that allow nutrients to pass into our cells, but biologists may have found the next best thing: a glimpse into the workings of the "motor"that opens and closes them. A research team has clarified the connection between these minuscule and the steps by which they use a cell's energy to permit or deny materials entry into the cell.

[Ironic] An Italian pensioner committed suicide after his wife fell in
Recalling the end of Romeo and Juliet, the 70-year-old man, Ettore, who had sat by his wife's bedside for four months after she slipped into a coma following a heart attack, finally gave up hope and gassed himself in the garage of his family home.Less than a day later, his wife, Rossana, woke up in her hospital bed in Padua and immediately asked for him.

Most Important Actors In Growth Process Of Neurons Identified
Defects in the growth process of our neurons often underlie brain or nerve diseases, such as Alzheimer's disease or multiple sclerosis. Scientists from the Flanders Interuniversity Institute for Biotechnology (VIB) connected to the Katholieke Universiteit Leuven, led by Bassem Hassan, have achieved a major step in unraveling the growth process of axons, the offshoots of neurons.


MP3 Music Downloads

Preview songs, Download Free Music,Burn CDs at ITunes.com
iTunes_RGB_9mm

 


Google




InformationQuickFind.com - Find Information Fast

Links