The Sales of Noritake Dinner Plates Are High Even Though

question 98

Multiple Choice

The sales of Noritake dinner plates are high even though a Noritake dinner plate is priced relatively high for its product class. This is because it offers high quality, has special features, and consumers view it as a prestige product. The pricing used by Noritake can be best described as

• A) value pricing.
• B) markup pricing.
• C) deceptive pricing.
• D) bundle pricing.

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Definitions:

Price Leadership

A market strategy where one leading company sets the price of goods or services within a sector, and other companies in the industry follow suit.

Airfare

The cost or price of a journey by airplane.

Price Leadership

A situation where one company (the price leader) sets the price of goods or services in the market, and other companies follow suit, often seen in oligopolistic markets.

Nash Equilibrium

An idea in strategic game theory in which none of the participants can gain by altering their approach if all other players maintain their current strategies.