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Julia wants her firm's gourmet snacks to be the leading brand in the U.S. market. When adopting a market share pricing strategy, she knows from studying other consumer brands that:
Answer
1. Rarely is the lowest-price offering the dominant brand in a market. 2. Prestige products need to be competitively priced. 3. Companies can gain market share by offering low-quality products at a high price. 4. Total value equals total cost minus variable costs leading to price escalation. 5. Price wars are the way to become the dominant brand.
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