Final answer:
Aaron is engaging in price matching by offering free repairs at his bicycle shop to compete with a similar offer by a rival shop.
Step-by-step explanation:
Aaron's new strategy to offer free repairs at his bicycle shop after noticing a competing shop doing the same is an example of price matching. Price matching is a competitive practice where a business chooses to match the prices or in this case, service offerings, of its competitors to retain customers. Unlike price fixing, there is no implication of collusion between businesses, and it is distinct from price discrimination or price leadership, where the pricing strategy is based on customer segments or an influential market position respectively.