Two competing gas stations in a small town almost always have the same price for gasoline. If one gas station raises or lowers the price of a litre of gas, the other station quickly follows suit. Which pricing objective does this illustrate?
A) increasing market share
B) maintaining status quo
C) communicating brand value
D) building loyal user base

Question

Quizplus · Accepted Answer

This situation illustrates the pricing objective of maintaining status quo, as both gas stations are keeping their prices consistent with each other and not attempting to gain a competitive advantage through pricing.

Two Competing Gas Stations in a Small Town Almost Always