Author Question: Scenario 20.1 Use the following to answer the questions. Suppose that Ray-Ban is considering ... (Read 49 times)

Metfan725 · **on:** Jun 29, 2018

Scenario 20.1
Use the following to answer the questions.

Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands.

Refer to Scenario 20.1. Ray-Ban has decided to promote the new sunglass line as an affordable luxury and plans significant promotional expenditures. With these objectives, which of the following should Ray-Ban use to price its product line?
A) Competition-based pricing
B) Cost-plus pricing
C) Markup pricing
D) Demand-based pricing
E) Differential pricing

Question 2

Scenario 20.1
Use the following to answer the questions.

Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands.

Refer to Scenario 20.1. Given Ray-Ban's plan for positioning the new sunglass line, they should use a ____ strategy when introducing their new product.
A) promotional
B) penetration
C) price-skimming
D) reference
E) secondary-market