Which statement is true regarding pricing tactics?

Pricing tactics refer to various strategies used by businesses to set short-term prices for their products or services, often in response to market conditions, competition, or consumer behavior. The correct statement, which highlights that these tactics are accepted methods for setting short-term prices, reflects the flexibility and strategic nature of pricing in marketing.

Businesses often implement pricing tactics to respond dynamically to market demands, competitive actions, and consumer purchasing trends. For instance, during peak times or seasons, a company might lower its prices to stimulate sales or clear out inventory, or it may increase prices in reaction to increased demand or costs. These tactics can include promotional pricing, discounting, penetration pricing, or psychological pricing, all of which are integral to a company’s marketing strategy.

Other options do not accurately encapsulate the nature of pricing tactics. For instance, claiming that pricing tactics are irrelevant in competitive markets overlooks the reality that competition often drives businesses to adopt various strategies to maintain market share and stay appealing to consumers. Stating that they can only be used during sales events limits their application since pricing tactics are applicable at various times, not solely during sales. Lastly, saying that pricing tactics always require the approval of the manufacturer suggests a lack of autonomy for retailers and service providers in deciding their pricing strategies