Question

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.

Answer 1

Penetration pricing

Step-by-step explanation:

It is a pricing technique in which producers/marketers lowers the price of their good and services at initial offering. The low initial price set by the businesses is aimed at penetrating into the market in order to attract customers by taking them away from their competitors. Penetration pricing helps with high adoption and diffusion of product and services, increase goodwill with customers and return high turnover. By putting low prices on their new product, Energizer used the penetration pricing strategy/technique.

Answer 2

A. penetration pricing.

Step-by-step explanation:

Based on the scenario being described within the question it can be said that in this case, Energizer used penetration pricing. This strategy focuses on placing a new product at a relatively low price when entering a new market in order to rapidly reach as wide an audience as possible. This price is slowly increased as it gathers a loyal customer base.