If local Shell service stations look at BP and Caltex service stations' prices as the primary method of determining their own prices, Shell is using:
A)price fixing, which considers competition to be less important than costs.
B)price fixing, which considers costs to be less important than competitors' prices.
C)market share pricing, which considers competition to be the ultimate pricing goal.
D)competition-based pricing, which considers profit to be the ultimate pricing goal.
E)competition-based pricing, which considers costs to be less important than competitors' prices.

Question

Quizplus · Accepted Answer

Shell is using competition-based pricing because they are looking at their competitors' prices as the primary factor in determining their own prices. This pricing strategy focuses on staying competitive with other companies in the market and takes into account the prices of their competitors. It also considers the costs involved in providing the product or service, but places more emphasis on the prices offered by other companies in the industry.

If Local Shell Service Stations Look at BP and Caltex