Problem: Glide dental floss (used for cleaning between the teeth) was introduced to the market by W.L. Gore & Associates (the makers of Gore-Tex waterproof fabric).  Glide is the only dental floss made of Teflon, which is a slippery material that glides smoothly over teeth without snagging.  Unlike other brands, however, Glide doesn't shred between the teeth.  Glide can be purchased at supermarkets and other health care retailers.

Assume that you are the Glide product manager, and that Glide has not yet been introduced to the market. Your task is to set the introductory price of Glide relative to other brands of dental floss.  Start your answer with the recommended price, then briefly discuss the most important factors that led you to recommend that price. Furthermore, assume that (1) the price you recommend will be the price at which retailers sell it; and (2) that the market leader for dental floss, Johnson & Johnson, sells its product at $1.98 for a package of 100 yards. Provide justifications and citations for your responses.