Answer to Question 1
B
Answer to Question 2
In most cases, marketers are in a better position to establish prices when they know the prices charged for competing brands. Learning competitors' prices should be a regular part of marketing research. Some grocery and department stores even employ comparative shoppers who systematically collect data on prices. Companies may also purchase price lists from syndicated marketing research services. Even if a marketer has access to competitors' price lists, they may not reflect the actual prices at which competitive products sell because negotiation is involved. Knowing the prices of competing brands is essential for a marketer. Regardless of a firm's actual costs, it does not want to sell its product a great deal above competitors' because products may not sell well, or a great deal below because customers may believe the product is of a low quality. Particularly in an industry in which price competition prevails, a marketer needs competitive price information to ensure that a firm's prices are the same as, or slightly lower than, competitors'. In some instances, an organization's prices are designed to be slightly above competitors' prices, to lend an exclusive image.
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