Wrigley Introduced a New Flavor of Orbit Brand Sugar-Free Chewing

question 340

Multiple Choice

Wrigley introduced a new flavor of Orbit brand sugar-free chewing gum, mint mojito, and its introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used

• A) skimming pricing.
• B) penetration pricing.
• C) price lining.
• D) odd-even pricing.
• E) loss-leader pricing.

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Definitions:

Vendor/Supplier Managed

A situation in which the supplier takes responsibility for maintaining inventory levels and ordering supplies, typically based on previously agreed-upon guidelines with the purchaser.

Purchasing Cards

Specialized payment cards issued to employees to make procurement transactions more efficiently and to reduce processing costs.

Small Value Orders

Purchases or orders of relatively low monetary value, which might not warrant the same level of procurement scrutiny as larger expenditures.

E-Procurement System

An electronic system that automates the purchasing and procurement processes of organizations.