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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 20.1.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

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Ray-Ban's plan for the new sunglasses line involves pricing it higher than other brands in department stores, but lower than their current lines sold in more selective stores. This aligns with a price-skimming strategy, where the company prices their product higher than competitors to position it as a more premium or distinctive brand. A promotional strategy would involve heavy advertising and sales promotion to increase product visibility and generate demand. A penetration strategy would involve pricing the product lower than competitors to gain market share. A reference strategy involves using endorsements or referrals from influential individuals or organizations to promote the product. A secondary market strategy involve selling products at a lower price to a less sought-after market segment. None of these options align with Ray-Ban's plan for their new sunglass line.

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