Scenario 13.1
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 13.1. 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?

Question

Quizplus · Accepted Answer

Ray-Ban wants to gather information about all brands sold in department stores and customers' perceptions of those brands before determining the price for the new sunglass line. This indicates that Ray-Ban is considering demand-based pricing. Also, the promotion of the product as an "affordable luxury" indicates that demand-based pricing would be most appropriate. Therefore, demand-based pricing would best suit Ray-Ban's objectives.

Scenario 13.1 Use the Following to Answer the Questions