Solution
✅ Correct Option: 3
Option 1 -> Premium pricing: This involves setting prices higher than competitors to position the product as high-quality or exclusive, which doesn't apply to regular cookies. Option 2 -> Penetration pricing: This strategy uses initially low prices to gain market share quickly, not indicated for regular cookies in this scenario. Option 3 -> Competitive pricing: This involves setting prices based on what competitors charge for similar products in the market. Option 4 -> Skimming pricing: This strategy sets high initial prices for new/innovative products, which doesn't fit regular cookies. Hence, Option 3: Competitive pricing -> Amit is pricing his regular cookies based on the prevailing market rates charged by competitors for similar products, allowing him to remain competitive while maintaining reasonable profit margins -> correct