Texaco and Shell are located directly across the street from one another. Texaco lowers its price for regular unleaded by 5 cents, and Shell quickly follows suit. What pricing objective is Shell using?
A) competitive pricing
B) skimming pricing
C) odd pricing
D) penetration pricing

Question

Quizplus · Accepted Answer

Shell is using competitive pricing, which involves setting prices based on what the competition is charging. By matching Texaco's price reduction, Shell is attempting to remain competitive and not lose customers to Texaco.

Texaco and Shell Are Located Directly Across the Street from One