A Day After Continental Airlines Announced Its New Low Fares

Multiple Choice

A day after Continental Airlines announced its new low fares for the autumn on travel from New York (i.e., Newark and LaGuardia Airports) to selected cities in the U.S., Canada, the Caribbean and Latin America, USAir and American Airlines matched Continental's fares. USAir and American Airlines are using a _____ strategy.

A) Value pricing
B) Price signaling
C) Demand-based pricing
D) Going-rate pricing
E) Price trimming