Author Question: Angela loves going shopping. After a long day at work, she stops by a local shopping center. First, ... (Read 155 times)

CharlieWard · **on:** Jun 29, 2018

Angela loves going shopping. After a long day at work, she stops by a local shopping center. First, she decides to stop by Barnes & Noble. Angela's favorite bookshop is the small, locally-owned book shop close to her home, but she visits Barnes & Noble because it is convenient. Next, she stops by a local Starbucks, where she likes to try new things. When she looked at the menu, she saw the name of a new latte she had heard about from friends and decided to try it. Then she went to Sephora to pick up some lipstick that she has run out of. However, when she gets there, Angela finds Sephora is out of lipstick. She is tired after her long day and annoyed that they are out of the lipstick. Because it is her favorite brand, Angela decides she will just have to come back another day. Angela displays ______________ for Barnes & Noble, _____________ for the latte at Starbucks, and ________________ for the lipstick.
A) brand preference; brand recognition; brand insistence
B) brand recognition; brand recognition; brand insistence
C) brand recognition; brand insistence; brand insistence
D) brand preference; brand insistence; brand recognition
E) brand insistence; brand preference; brand recognition

Question 2

Identify and describe the four types of product-line pricing.

rnehls · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

Product-line pricing means establishing and adjusting the prices of multiple products within a product line. Product-line pricing can provide marketers with flexibility in setting prices. When marketers employ product-line pricing, they have several strategies from which to choose. These include captive pricing, premium pricing, bait pricing, and price lining. When marketers use captive pricing, the basic product in a product line is priced low, but the price on the items required to operate or enhance it are higher. This pricing strategy is effective because consumers must purchase more of the operating items than the basic product, over their lifetimes. Premium pricing occurs when the highest-quality product or the most-versatile and most desirable version of a product in a product line is assigned the highest price. Other products in the line are priced to appeal to price-sensitive shoppers or to those who seek product-specific features. Marketers that use premium pricing often realize a significant portion of their profits from premium-priced products. To attract customers, marketers may put a low price on one item in the product line with the intention of selling a higher-priced item in the line. This strategy is known as bait pricing. Producers of smartphones and tablets may engage in bait pricing, selling ultra-low-priced models that lure in customers but charging extra for the most desirable features. Price lining is the strategy of selling goods only at certain predetermined prices that reflect explicit price breaks. It eliminates minor price differences from the buying decision-both for customers and for managers who buy merchandise to sell in these stores.