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

question 186

Multiple Choice

response to Duracell's introduction of the Duracell Ultra battery,Energizer introduced an Advanced Formula battery.But unlike Duracell,Energizer priced its batteries at a low initial price to attract the mass market.Energizer used

• A) penetration pricing.
• B) prestige pricing.
• C) skimming pricing.
• D) price lining.
• E) cost-plus fixed-fee pricing.

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Definitions:

National Banks

National banks are financial institutions chartered by the federal government of a country, authorized to provide a variety of banking services, including accepting deposits, making loans, and issuing currency.

Interest-rate Ceilings

Regulatory limits placed on the maximum interest rates that can be charged on loans, intended to protect borrowers.

Bank Profits

The earnings generated by banks, derived from the difference between the interest paid on deposits and the interest received from loans.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at commercial banks and savings institutions.