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iris [78.8K]
3 years ago
6

When Frito-Lay introduced its Stax brand of potato chips. These chips were meant to compete directly against Pringles. The inten

t was to gain market share quickly. During the first few months they were on the market, Stax retailed for 69 cents. What type of pricing strategy is Frito-Lay likely using?
A. ​Bait pricing
B. ​Penetration pricing
C. ​Periodic discounting
D. ​Price-skimming
E. ​Captive pricing
Business
1 answer:
Sedbober [7]3 years ago
3 0

Answer:

B, penetration pricing

Explanation:

Penetration pricing is a pricing strategy in which a manufacturer sets the price of its product low for a start so as to have a wide reach and acceptability in the market.

This pricing strategy is meant to make customers ditch their usual product for the new product, thereby having the new product attracting customers to itself.

Ultimately, penetration pricing increases market share of the new product manufacturer as it gains a lot of customers within the shortest possible time.

Penetration helps to discourage new product entrance into the market thus giving the product a large/high stock turnover throughout the product's distribution channel.

In the above question, Frito lay introduced its chips at a low price of 69cents for a period of time (first few months, say 3 or 4 months for example) in order to gain market share quickly.

Cheers

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How can the use of new technology in industry benefit the US government?
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All the statements are correct.

Explanation:

A and D are correct because better transportation technology means that the government can import (purchase materials) and export (transport goods) around the world with relative ease.

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Because translations can be used to translate the financial results of Sanco presented in FCUs to U.S. dollars, transactions will be translated using the rate of exchange in effect at the time of each transaction or the weighted average exchange rate for the year.

In this scenario, the weighted average exchange rate for the duration shall be given as

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A firm expects to pay dividends at the end of each of the next four years of $2.00, $1.50, $2.50, and $3.50. If growth is then e
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P0 = $43.96935449 rounded off to $43.97

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Using the dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula to calculate the price of the stock today is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

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P0 = $43.96935449 rounded off to $43.97

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