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

Question

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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