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. 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

Question

Quizplus · Accepted Answer

Ray-Ban's plan for positioning the new sunglass line is to sell it at a higher price than other brands in the department stores but at a lower price compared to their current higher-end lines. This is a classic example of a price-skimming strategy. This strategy is appropriate when a company wants to differentiate its product from others in the market and is able to charge a premium price for that differentiation.