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

question 28

Multiple Choice

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?

• A) Price-skimming
• B) Captive pricing
• C) Periodic discounting
• D) Penetration pricing
• E) Bait pricing

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