In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its batteries at a low initial price, believing that consumers were too price-sensitive to pay more in this category. In this case, Energizer used
A) penetration pricing.
B) prestige pricing.
C) skimming pricing.
D) price lining.
E) cost-plus fixed-fee pricing.

Question

Quizplus · Accepted Answer

Energizer used penetration pricing, which involves setting a low initial price to attract customers and gain market share, especially when consumers are price-sensitive.

In Response to Duracell's Introduction of the Duracell Ultra Battery