Question

When Kroger, a national supermarket chain, uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29), it is attempting to a. help stimulate the local economy and generate good will with its customers. b. drive its competition out of business. attract customers in hopes they will buy other products as well. c. work with the local bottler to move products that are close to their expiration dates. d. fill its parking lot so its store will look successful.

Answer 1

Answer:

b. drive its competition out of business. attract customers in hopes they will buy other products as well.

Explanation:

As in the given instance, the information states that the discount given is exceeding the normal margin.

As the normal price is $4.29 and the current price is $2.09

This will attract huge customers and this will also provide extra competitive advantage.

This will ensure more sales, as after providing this discount the owner expects that people will come in the store and will buy even more goods, as the customer will think that there might be other discounts as well in the store.

Therefore, correct option is:

Option B