Asked by
Sweta Uraon
on Dec 15, 2024Verified
Companies use a price premium to assess whether their products and brands are priced above, at, or below the market. This price premium equals
A) unit volume market share for a brand divided by dollar sales market share for a brand, minus one.
B) dollar sales market share for a brand divided by unit volume market share for a brand, plus one.
C) dollar sales market share for a brand divided by unit volume market share for a brand, minus one.
D) dollar sales market share for a brand, divided by unit volume market share for a brand, plus one.
E) dollar sales market share for a brand, divided by unit volume market share for a brand, minus the number of competitors against which a brand is being measured.
Price Premium
The extra amount consumers are willing to pay for a product due to perceived added value or quality.
Market Share
The percentage of total sales or revenue in an industry generated by a specific company, indicating its size and competitiveness in the market.
Dollar Sales
The total revenue generated from the sale of goods or services, measured in dollars.
- Identify the impacts of competitive factors on pricing decisions.
Verified Answer
AL
Learning Objectives
- Identify the impacts of competitive factors on pricing decisions.