Scenario 12.3 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 12.3. Ray-Ban's plan of gathering information about the other brands sold in department stores, including their prices, would most likely be used in a ____ basis for pricing.
A) Cost
B) Competition
C) Demand
D) Customer
E) Market

Question

Quizplus · Accepted Answer

Ray-Ban wants to position the new line as a more distinctive brand than typical glasses sold through department stores and price it higher than other brands, but lower than their current lines sold in more selective stores. Therefore, Ray-Ban would most likely use competition as a basis for pricing and gather information about other brands sold in department stores, including their prices. This would allow Ray-Ban to position their new line competitively in the market.