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

question 282

Multiple Choice

Wrigley recently introduced a new flavor of Orbit brand sugar-free chewing gum-mint mojito. The 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:

Competition

The effort and striving between two or more independent rivals to secure the business of one or more third parties by offering the best possible terms.

Economic Power

The ability of individuals, companies, or countries to control or influence the market, including prices, distribution, and availability of goods.

Command System

An economic system where the government makes all decisions on production and consumption.

Central Planning

An economic system where the government or a centralized authority makes all decisions regarding the production and distribution of goods and services.