Frito-Lay Introduced Its Stax Brand of Potato Chips to Compete

question 193

Multiple Choice

Frito-Lay introduced its Stax brand of potato chips 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 was Frito-Lay likely using?

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

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