When one airline changes its prices to match another airline, what type of pricing objective are they likely following?

The scenario describes a situation where an airline changes its prices to match those of a competitor. This behavior aligns with a status quo-oriented pricing objective. Companies that adopt this strategy aim to maintain a certain market position and avoid price wars, focusing instead on preserving their customer base and market share.

By matching competitor prices, the airline seeks to uphold existing market conditions rather than aggressively pursuing pricing changes for profit maximization or sales increases. This approach indicates a desire not to disrupt the market environment significantly; instead, the airline is reacting to competitors in order to maintain stability in its pricing strategy.

In contrast, a profit-oriented strategy would involve setting prices to maximize profits, potentially without regard to competitors’ pricing. A sales-oriented approach focuses on boosting sales volumes rather than maintaining market standings. Market-driven pricing might emphasize responding to consumer demand or market conditions, rather than directly reacting to competitors. The focus on matching competitors distinctly characterizes the status quo-oriented objective.