If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is most likely using:
A) price fixing; which considers competition to be less important than costs.
B) price fixing; which considers costs to be less important than competitor's 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) competitionbased pricing, which considers costs to be less important than competitor's prices.

Question

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is most likely using:
A) price fixing; which considers competition to be less important than costs.
B) price fixing; which considers costs to be less important than competitor's 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) competition­based pricing, which considers costs to be less important than competitor's prices.

Quizplus · Accepted Answer

Shell is using competition-based pricing, which focuses on setting prices based on competitors' prices rather than costs.

If Local Shell Gasoline Stations Look at BP Stations' Prices