In Response to Duracell's Introduction of the Duracell Ultra Battery

question 99

Multiple Choice

In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its battery at a low initial price to attract the mass market. Was Energizer's pricing strategy to take market share from Duracell a success?

• A)No, because consumers are price-insensitive when it comes to batteries.
• B)Yes, because of the positive association with the "Energizer Bunny" marketing campaign.
• C)No, because consumers were unable to perceive the improved quality due to the low price.
• D)Yes, because consumers typically respond positively to cost-plus pricing.
• E)Yes, because the demand for batteries has unitary elasticity.

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Definitions:

Equity Theory

A special case of social exchange theory that defines a relationship as equitable when the ratio of inputs to outcomes are seen to be the same by both partners.

Distributive Justice

The fairness of the outcome of a decision.

Egalitarian

Pertaining to or based on the principle that all people are equal and deserve equal rights and opportunities.

Desirable Personality

A set of personality traits that are broadly attractive to others, often including traits like kindness, honesty, humor, and empathy.