In the fall semester,Alex noticed that the plastic cola bottles in the vending machines at his university had changed shape.Upon further investigation,he realized that each bottle contained 2 ounces less beverage than previous bottles,even though he paid the same price as last semester.The pricing objective of the beverage company is to:
A)Increase profits by reducing the amount provided in each bottle.
B)Build traffic at the vending machines by changing the shape of the bottle.
C)Undercut the competition by changing the shape of the bottle.
D)Increase market share by reducing the amount provided in each bottle.

Question

Quizplus · Accepted Answer

By reducing the amount of beverage in each bottle, the company can save on costs while still charging the same price as before, leading to an increase in profits. The change in shape of the bottle may have been a tactic to distract consumers from noticing the reduction in volume.

In the Fall Semester,Alex Noticed That the Plastic Cola Bottles