There are many trends that can be detected when analyzing pricing. There are investment strategies which people will analyze the market prices of similar products. People may not rely on looking at the strengths of the companies, but rather they would look straight at all of the prices including the competitor’s and their own. Prices may move up and down based on the supply and demand of the product. People will try to figure out the trends in the market by looking at the direction that their product is taking.
There are many techniques to use to determine these trends. Price following is a practice that can help firms facilitate cooperative pricing. This will help determine how to price products and whether they are selling or not.