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

question 189

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 batteries 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:

Accumulated Depreciation

The total amount of a tangible fixed asset's cost that has been allocated as depreciation expense since the asset was put into use.

Differential Profit

The difference in profit between two business choices, helping in decision-making by highlighting the financial impact of each option.

Lease-End

The conclusion of a lease agreement, at which point the lessee may have options such as renewing the lease, returning the asset, or purchasing it.

Broker Commission

A fee paid to a broker for executing a transaction, typically a percentage of the transaction value.