Scenario 12

question 174

Multiple Choice

Scenario 12.3 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 12.3. If Ray-Ban selected the prices for its new sunglasses to be $59.99 or $79.99, this would be an example of using ____ pricing in order to increase sales of the new line.

• A) product-line
• B) odd-number
• C) professional
• D) promotional
• E) penetration

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Definitions:

Minority Interest

The share of ownership in a subsidiary company that is not owned or controlled by the parent corporation.

Subsidiary's Stock

Shares owned in a company that is controlled by another entity (the parent company), often by owning the majority of its stock.

Consolidation Procedures

Accounting processes used to combine the financial statements of a parent company with its subsidiaries, presenting the group as a single economic entity.

100%-Owned Subsidiaries

Companies completely owned by another company, allowing the parent full control over operations and decisions.