David Likes New Balance Running Shoes

question 29

Multiple Choice

David likes New Balance running shoes.However,when he stopped by the Foot Locker to buy a new pair of running shoes,he noticed that Nike had a new pair of running shoes that cost $350.To David,the higher price of the Nike shoe indicated that it would be a better pair of running shoes.This is an example of:

• A) premium pricing.
• B) price lining.
• C) prestige pricing.
• D) exclusive pricing.
• E) selective pricing.

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Definitions:

Reputational Risk

The potential of losing stakeholder trust or diminishing brand value due to negative public opinion.

Valuation Risk

The potential for loss that arises from inaccuracies or errors in assessing the value of assets, liabilities, or investments.

Micro Political Risk

Micro political risk involves the impact of political decisions, events, or conditions on an individual firm's operations and performance, as opposed to the broader industry or economic segment.

Macro Political Risk

Adverse political actions that affect all foreign investments and operations in a host country.