SELF TEST 20B: Evaluating Competition and Their Knowledge, Capacity and Will
How do we assess the likelihood that a competitor will follow us in a price change, either up or down?
What is a Peer?
What prices do Peers receive compared to one another?
What is Price Leverage?
Where might you expect to find Price Leverage in a customer relationship?
What is Price Information?
Compare Price Leverage to Price Information.
How does the competitor’s knowledge of our price move affect our pricing plans?
How do you Win customer volume on price?
What determines a competitor’s capacity to counteract our price change?
What is a Leader’s Trap?
How do we evaluate the will of a competitor to counter our price move?
Are competitive pricing tactics predictable?
What does it mean if a competitor has more Positive Volatility on price than average in the industry?
What does it mean if a competitor has higher than average Negative Volatility due to price?
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