Scenario 12.2 Use the Following to Answer the Questions

question 82

Multiple Choice

Scenario 12.2
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 12.2. 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

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Definitions:

Mary Wollstonecraft

An 18th-century British writer, philosopher, and advocate of women's rights, best known for her work "A Vindication of the Rights of Woman."

Simone de Beauvoir

A French writer, philosopher, and feminist, known for her work on existentialism and feminism, notably "The Second Sex."

Communitarians

Advocates for the importance of community in the formulation of individual rights and values, emphasizing social cohesion and communal responsibilities.

Social Contract

A theory or model, originating during the Age of Enlightenment, that typically concerns the legitimacy of the authority of the state over the individual, positing that individuals consent, either explicitly or tacitly, to surrender some of their freedoms in exchange for protection of remaining rights.