Question

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?

Answer 1

No, because consumers equate quality of batteries with higher prices. With batteries consumers believe there is a price- quality relationship, it does not make the consumers, price insensitive. Also, there is no indication Energizer set a target price and adjusted cost and quality components to maintain wholesaler and retailer margins.