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 to attract the mass market.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 the mass market. This is in contrast to skimming pricing, which involves setting a high initial price for a new product, or prestige pricing, which involves setting a high price to create an image of quality or exclusivity. Price lining refers to offering different products at different price points, while cost-plus fixed-fee pricing involves adding a markup to the cost of producing a product.

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