Asked by
Anthony Soriano
on Nov 20, 2024
Verified
Kendra always buys and uses Wilson brand tennis balls. If she finds a Penn or Dunlop ball on the court, she gives it away. Brand-loyal tennis players like Kendra allow Wilson to charge a higher price and not lose many sales. By building a strong brand, Wilson has effectively
A) increased the income effect for its products.
B) increased the cross-price elasticity for its products.
C) focused on the competitive parity point for its products.
D) shifted the golf ball market from a monopoly to pure competition.
E) reduced the price elasticity of demand for its products.
Brand-Loyal
A consumer behavior characterized by consistent preference and purchase of a particular brand over others.
Cross-Price Elasticity
The percentage change in demand for product A that occurs in response to a percentage change in price of product B; see also complementary products.
Competitive Parity
A strategy where a company ensures its share of marketing spend is comparable to its competitors.
- Identify the influence of consumer allegiance to brands on market behaviors and strategies for setting prices.
Verified Answer
MM
Learning Objectives
- Identify the influence of consumer allegiance to brands on market behaviors and strategies for setting prices.