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nlexa [21]
3 years ago
7

What are three common causes of scarcity??

Business
1 answer:
musickatia [10]3 years ago
6 0
Poor distribution of resources, when demand increases and supply cant keep up, and or government intervention.
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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.

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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.

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