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Changing prices on established brands presents challenges. Shoppers are used to

ID: 1114101 • Letter: C

Question

Changing prices on established brands presents challenges. Shoppers are used to what frequently purchased products cost such as ready-to-eat cereal, potato chips, and canned vegetables. To lower prices with these types of products, manufacturers most often:

Use regional coupons to clear the market.

Increase advertising intensity to justify a lower price.

Change the color of the packaging and include on-package messaging such as “now at a lower price.”

Keep the price and package the same while increasing the amount of content.

Purchase end-of-aisle shelf space to encourage impulse purchases.

Use regional coupons to clear the market.

Increase advertising intensity to justify a lower price.

Change the color of the packaging and include on-package messaging such as “now at a lower price.”

Keep the price and package the same while increasing the amount of content.

Purchase end-of-aisle shelf space to encourage impulse purchases.

Explanation / Answer

Keep the price and package the same while increasing the amount of content.

the above is the answer

in this way the net price per volume terms is declined.