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.

Question

Quizplus · Accepted Answer

Consumers often associate low prices with lower quality, which may have led to skepticism about the battery's performance compared to Duracell's.

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