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.Was Energizer's pricing strategy to take market share from Duracell a success?
A)No, because consumers equate quality of batteries with higher prices.
B)No, because consumers are price-insensitive when it comes to batteries.
C)Yes, because the positive association with the "Energizer Bunny" kept going, and going, and going.
D)Yes, because consumers typically respond positively to cost-plus pricing.
E)Yes, because the demand for batteries has unitary elasticity.

Question

Quizplus · Accepted Answer

The Answer of 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.Was Energizer's pricing strategy to take market share from Duracell a success?
A)No, because consumers equate quality of batteries with higher prices.
B)No, because consumers are price-insensitive when it comes to batteries.
C)Yes, because the positive association with the "Energizer Bunny" kept going, and going, and going.
D)Yes, because consumers typically respond positively to cost-plus pricing.
E)Yes, because the demand for batteries has unitary elasticity.

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