Scenario 21.1 Use the Following to Answer the Questions

question 28

Multiple Choice

Scenario 21.1
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 21.1.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?

• A)competition-based pricing
• B)cost-plus pricing
• C)markup pricing
• D)demand-based pricing
• E)differential pricing

Understand the critical factors that contribute to the successful implementation of change initiatives.

Understand the components of human capital and its significance in strategic planning.

Identify new areas of focus for today's HR managers.

Explain how HRM balances competing demands in organizations.

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Definitions:

Market Price

The current market rate at which services or goods are offered for sale or purchase.

Cost Data

Information related to the expenses involved in producing a good or providing a service, used for pricing, budgeting, and financial analysis.

Pure Competition

Refers to a market structure where there are many sellers and buyers, products are homogeneous, and there is free entry and exit in the market.

Free Enterprise

An economic system based on private ownership, voluntary exchange, competition, and the freedom of individuals to engage in business transactions.