Comparitive Response Matrix

1.) C p,p
Price decrease by Company A is followed by Company B .
Coca Cola vs Pepsi

The cola category is intensely price sensitive and pricing decisions are inter-
dependent. In February 2012 , Coca-Cola dropped prices of its entry-level
200-ml returnable glass bottles just ahead of the summer, from Rs 10 to Rs
8, by 20% . PepsiCo followed weeks later with similar prices.


2.) C p,q
Price decrease by Company A is followed by Quality increase
by Company B .
American airlines vs Lufthansa airlines

This had been observed in airline industry in United States of America .
Where American airlines decreased its cost by 30 % . This was followed by
increase in standards of Lufthansa airlines . It facilitated its customers by
superior quality of comfort seating , better internet facilities and providing
better services .