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In 2003 Frito-Lay Introduced Its Stax Brand of Potato Chips

question 28

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In 2003 Frito-Lay introduced its Stax brand of potato chips. These chips were meant to compete directly against Pringles. The intent was to gain market share quickly. During the first few months they were on the market, Stax retailed for 69 cents. What type of pricing strategy is Frito-Lay likely using?


Definitions:

Social Organization

The structured patterns of relationships and roles found within societies that organize and coordinate collective human activities.

Family Unit

A social group in society typically consisting of parents and their children living together as a single household.

Age Grades

Social categorizations based on age, often used in various cultures to organize community roles and responsibilities according to life stages.

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