Scenario 12.2
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 12.2. If Ray-Ban selected the prices for its new sunglasses to be $59.99 or $79.99, this would most likely be an example of using ____ pricing in order to increase sales of the new line.
A)product-line
B)odd-number
C)customary
D)promotional
E)penetration

Question

Quizplus · Accepted Answer

Selecting prices of $59.99 or $79.99 is an example of odd-number pricing. This pricing tactic is commonly used to increase sales by making the price appear lower than it actually is. By selecting odd numbers, such as $59.99, rather than even numbers, such as $60.00, customers perceive the price as cheaper, which may encourage them to make a purchase. This pricing tactic is effective for products that are positioned as more distinctive and higher-priced, such as Ray-Ban's new line of sunglasses.

Scenario 12.2 Use the Following to Answer the Questions