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

The correct answer is status quo-oriented pricing. When an airline changes its prices to match another airline, it is primarily concerned with maintaining a competitive position rather than seeking to aggressively undercut a rival or establish a significant price advantage. This behavior is typical of companies that prioritize stability and consistency in their pricing strategy, rather than focusing solely on profit maximization or capturing market share.

Status quo-oriented pricing aims to maintain existing market dynamics and avoid price wars, which can erode profitability for all players involved. By matching competitor prices, the airline is also signaling to consumers that they offer competitive value compared to their rivals, thereby reinforcing the overall market equilibrium without destabilizing it through drastic pricing changes.

Other pricing objectives, such as profit-oriented, focus on maximizing margins regardless of competitors' prices, market-driven would imply a dynamic and adaptive pricing strategy based on extensive market analysis, and sales-oriented would prioritize volume increases over competitive pricing strategies. These approaches do not align with the behavior of simply matching the prices established by competition.