Aon Interview Question: There were several parts, but... | Glassdoor

Interview Question

Actuarial Student Interview Chicago, IL

There were several parts, but in general was something like

  this: You have just been handed the ownership of a gas station. You have no experience in the industry, and currently nothing in the gas station (including the gas) is priced. How would go about pricing your product and running the business in general.

Interview Answer

1 Answer


Given that I have no experience in the industry, hiring a consulting firm would be my first option in getting the correct information on how to run the business. Gas stations are in what economists call a nearly perfectly competitive market. This means that there tends to be a wealth of information about prices (especially gas itself) and that it is publicly known. If the gas station is in an urban or suburban area, there is a good chance there will be another gas station very near. Gathering price information would be as simple as walking over to the competitor's station to take inventory of all prices. Because perfect, or nearly perfectly, competitive markets have similar products, I would have to really innovative in making my station appeal to customer over any other gas stations. This would come in the form of offering a breakfast bar, integrating small branch of fast food chains, or implementing a rewards program.

Interview Candidate on Dec 11, 2011

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