Specialized Bicycle Components, Inc. (SBC) caters to the experienced cyclist. In this video, SBC's brand manager explains the company's segmentation and pricing strategy.

1. Review the tactical pricing approaches shown in Exhibit 11.4. Which of these did you see evidence of being part of the SBC pricing strategy? Discuss the evidence you observed.

2. The SBC executive noted that children who start their cycling experience on SBC bicycles will be more likely to purchase SBC products in the future as they grow older. Which of the pricing strategies listed in Exhibit 11.2 might come into play in support of this objective?