Scenario 21.1 Use the Following to Answer the Questions

question 121

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.Given Ray-Ban's plan for positioning the new sunglass line,they should use a ____ strategy when introducing their new product.

• A)promotional
• B)penetration
• C)price-skimming
• D)reference
• E)secondary-market

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Definitions:

Period Of Sale

The time period between when a product is listed for sale and when it is actually sold.

Partial Billings

Invoicing method where a customer is billed incrementally for partially completed work, often used in long-term projects.

Completed-Contract Method

An accounting technique where revenue and expenses of a long-term contract are recorded only when the project is completed.

Construction In Progress

An accounting term for the financial balance of construction costs attributed to assets under construction that have not yet been completed.