At one CVS drugstore,a four-pack of Energizer AA batteries was on sale at 2.99 USD compared with a Duracell four-pack at 4.59 USD.The Duracell market share dropped 2 percent in a recent two-year period,and its profits declined over 30 percent.Why did this happen?
A) The price differential was too high.
B) The market for batteries is saturated.
C) The customer perceived the products to be different.
D) There are valid alternatives for batteries.

Question

Quizplus · Accepted Answer

Customers may desire the product, but they are repelled by the price premium. For example, Duracell recently charged too much for batteries. The firm tried to sell consumers on its superior-quality products, but the mass market was not convinced. Why? The price differential was simply too high. Clearly, the price-performance proposition Duracell offered customers was not accepted.

At One CVS Drugstore,a Four-Pack of Energizer AA Batteries Was