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

question 199

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 suspected inferior 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:

M/M/1

A basic queueing model in operations research representing a system with a single server, Poisson arrival rate, and exponential service time distribution.

Units

Measurements or quantities of a product, item, or component, often used as a basis for production, inventory, or sales.

Waiting-Line Problem

A scenario in operational research where the focus is on reducing waiting times and improving service efficiency in queueing systems.

Operations

Activities involved in the day-to-day running of a business for producing and delivering products or services.