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. If Ray-Ban selected the prices for its new sunglasses to be $59.99 or $79.99, this would be an example of using ____ pricing in order to increase sales of the new line.
A) product-line
B) odd-number
C) professional
D) promotional
E) penetration

Question

Quizplus · Accepted Answer

Selecting $59.99 or $79.99 is an example of odd-number pricing, which is typically used to make prices seem lower and increase sales. This strategy is commonly used in retail and may help Ray-Ban attract customers who are looking for a better value but are willing to pay more for higher quality sunglasses.