Oilfield Inc.and Trell Inc. ,two major oil companies,are located directly across the street from one another.Oilfield lowers its price for regular unleaded oil by 5 cents,and Trell quickly follows suit.What pricing objective is Trell using?

Question

Quizplus · Accepted Answer

Trell is using competitive pricing by matching Oilfield's lowered price. This is a common strategy in a highly competitive market where companies need to match their competitors' pricing to stay competitive.