The following appeared in a memo from the marketing director of Bargain Brand Cereals.
"One year ago we introduced our first product, 'Bargain Brand' breakfast cereal. Our very low prices quickly drew many customers away from the top-selling cereal companies. Although the companies producing the top brands have since tried to compete with us by lowering their prices, and although several plan to introduce their own budget brands, not once have we needed to raise our prices to continue making a profit. Given our success selling cereal, Bargain Brand should now expand its business and begin marketing other low-priced food products as quickly as possible."
The following appeared in a memo from Grocery Town's regional manager.
"The new Grocery Town store in Elm City, located near a new residential development, has a 'high-low' pricing policy where average prices are relatively high, but deep discounts are offered on some items in weekly specials....