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:

Neural Tube Defects

Neural tube defects are birth defects of the brain, spine, or spinal cord that occur when the neural tube does not close completely during early fetal development.

Spina Bifida

A neural tube defect that causes abnormalities of the brain and spine.

AFP Level

Alpha-fetoprotein level, a marker tested during pregnancy to assess the risk of certain birth defects and conditions in the fetus.

Neural Tube Defects

Birth defects of the brain, spine, or spinal cord that occur due to incomplete development of the neural tube during early pregnancy.