Scenario 21.1
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 21.1.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

Quizplus · Accepted Answer

Demand-based pricing would be the best choice for Ray-Ban in this scenario as they are aiming to position their new line as an "affordable luxury" and want to gather information about customers' perceptions of brands sold in department stores. By using demand-based pricing, they can set a price that aligns with customers' perceived value and willingness to pay for a more distinctive and affordable luxury brand, while also considering their competitors' prices in the department store market.

Scenario 21.1 Use the Following to Answer the Questions