Nike has used Michael Jordan to create the impression that Air Jordan

Nike has used michael jordan to create the impression

This preview shows page 2 - 4 out of 4 pages.

118) Nike has used Michael Jordan to create the impression that Air Jordan basketball shoes aresuperior to any other basketball shoes. Nike is attempting to A) differentiate Air Jordan basketball shoes from other types of basketball shoes.B) convince consumers that Air Jordan basketball shoes are no different from other basketballshoes favored by celebrities.C) increase its profit by raising the price of Air Jordan basketball shoes.D) lower the marginal cost of producing Air Jordan basketball shoes.Answer: A118)Diff: 2Page Ref: 446/446Topic: Product DifferentiationLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking 119) When a credit card company offers different services with its card, like travel insurance for airtravel tickets purchased with the credit card or product insurance for items purchased with thecard, the credit card company is trying to 119)Diff: 2Page Ref: 446/446Topic: Product DifferentiationLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective Thinking 40
Background image
120) Juicy Couture has been successful in selling women ʹs clothing using an unusual strategy.According to an article in the Wall Street Journal, the key to the firmʹs strategy is toʺlimitdistribution to maintain the brandʹs exclusive cachet, even if that means sacrificing sales, abrand-management technique once used only for high-end luxury brands.ʺIn 2006, Juicy clotheswere sold in only four department stores: Neiman Marcus, Saks, Bloomingdaleʹs, and Nordstrom.In 2006, its sales have more than quadrupled since 2002.Source: Rachel Dodes,ʺFrom Track Suits to Fast Track,ʺWall Street Journal, September 13, 2006.How does limiting the number of stores in which Juicyʹs products are sold contribute to itssuccess?
Background image
Image of page 4

You've reached the end of your free preview.

Want to read all 4 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes