Cali would like to capitalize on its success in sporty clothes for girls and increase its volume in sporty clothes for boys. Sparkle, who shares the sporty boy grassland with Cali and Move, has had fairly conservative competitor pricing strategies in the past and doesn’t consider

 
 
 
 
 
 

In this scenario, Sparkle has all of the criteria for a small, limited competitive response to Cali’s price move.