Question

Which of the following LEAST describes the concept of brand equity?

		Suggests how strong and how well the brand fits with consumers' needs
		Provides information to help assess supply chain optimization
		Suggests a high level of awareness and brand associations
		Is based on perceived product quality and loyalty

A country club may charge a price to become a member and charge a monthly fee. This is called...

A. Two-part pricing.

B. Bundling prices.

C. Segregating pricings.

D. Price bundling

Answer 1

1. Option B.

• A brand equity explains a lot about the product in terms of quality, price, loyalty, awareness etc.
• It shows how strong and how well the brand satisfies the customer needs.
• Brand equity also project's the quality and loyalty of a product.
• The concept of brand equity least describes how it helps in assessing supply chain optimization.

2. Option A.

• Two part pricing refers to a pricing strategy in which firm's might initially charge a fixed price for a product or a service and also keep charging per unit prices for its services or products.
• Hence if a club charges a price to become a member and also a monthly fee, it is considered as two part pricing.