Your boss has asked you to secret shop the nearby appliance store. They are your main competitor and the prices they charge have a strong influence on what you can charge. You sell appliances that have stronger brand names and higher consumer reports ratings than the appliances your competitor sells. You also offer free delivery, something your competitor does not offer. You find that your competitor consistently sells appliances for $50 more than you charge for models with comparable features. Based on this information, what response is most likely to increase your stores overall profit?

a. Decrease prices by $10 per unit to increase volume further.

b. Raise prices by $20 per unit to close the gap on your competitor.

c. Raise prices by $55 because of the enhanced perception of your products and services.

d. Keep prices the same because thats what customers expect.