Answer :
When a firm sets prices similar to major rivals' prices, it is using a strategy known as competitive parity pricing.
A firm sets prices similar to major rivals' using competitive parity pricing, which aims to maintain market position and is distinct from premium pricing or target profit pricing.
This method is part of a company's branding and marketing strategy and involves setting prices based on what competitors charge, often in an effort to maintain a stable position within the market without engaging in price wars.
Competitive parity is different from premium pricing (where companies charge higher prices to signal quality), comprehensive (which isn't a standard pricing strategy term), and target profit pricing (where prices are set to achieve a specific profit goal after covering costs).