Question

Jamie Patterson is wondering how she should handle Kissed by the Sun Apple Juice when it enters PLC decline. Help her out. Which of the following would be reasonable options?

both raising and lowering the price in selective markets could work

A. add a new attribute to the brand

B. raise the price in selective markets

C. add a new attribute to the brand, raise the price in selective areas and lower the price in selective areas could all work

D. lower the price in selective markets

Answer 1

The right answer is option C, that is, add a new attribute to the brand, raise the price in selective areas, and lower the price in selective areas could all work. By adding a new attribute to the brand Jamie Patterson can gain some market power that will allow to sell more juice. Also by adjusting the price according to the elasticity of demand will help in increasing the sale, for example, Jamie Patterson should lower the price in an area where elasticity of demand is higher and increase the price in an area where elasticity of demand is lower.