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 a competitive pricing strategy by lowering its price to match Texaco's, in order to remain competitive in the market. Skimming pricing is a strategy in which a company sets a high initial price for a product and then gradually lowers the price over time. Odd pricing and penetration pricing are not relevant in this scenario.

Texaco and Shell Are Located Directly Across the Street from One