Scenario 21.1 Use the Following to Answer the Questions

Multiple Choice

Scenario 21.1
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 21.1.Ray-Ban has decided to promote the new sunglass line as an "affordable luxury" and plans significant promotional expenditures.With these objectives,which of the following should Ray-Ban use to price its product line?

A) competition-based pricing
B) cost-plus pricing
C) markup pricing
D) demand-based pricing
E) differential pricing