Parell's, a shampoo manufacturer, carried an ad campaign where it asked television viewers to identify the hair that was shampooed and conditioned with Parell's products and the hair on which expensive salon hair-care products were used.The idea of the ad was to make the viewers realize that a person could not distinguish between the hair that used the comparatively cheaper Parell's brand from hair that used the very expensive salon brand.By making price its selling point, Parell's is most likely using _____.

Question

Quizplus · Accepted Answer

The "market price" of a product is what customers are generally willing to pay, not necessarily the price that the firm sets.Marketing managers often have a subjective feel for the competitors' price or the market price.Using this benchmark, they then may deliberately choose a strategy of above-, at-, or below-market pricing.

Parell's, a Shampoo Manufacturer, Carried an Ad Campaign Where It