1) Is economic value purely based on the price of the good. Briefly explain your answer in one sentence (3 points).

2) How is cultural branding distinct from other forms of purpose branding? choose the right answer:

a) It focuses on improving customer lives in a meaningful way

b) It focuses on consumers' cultural values (i.e., core principles and values of a cultural group)

c) It challenges established norms and ideologies

d) It promotes social change

3) Identify one way in which Concordia University can use AI to improve student experience at the John Molson School of Business in one sentence

5.Which of the following strategies is most likely going to minimize the showrooming trend (in a clothing retail store). (3 points)

A) Hold regular online contests that increase customer engagement

B) Offer personalized pricing based on customers previous purchases

C) Make stores visually appealing by limiting inventory in store and making more products available online

D) Hire expert fashion advisors to provide personalized styling services in-store

6.From a company's perspective, what is the main objective of dynamic pricing? (3 points)

A) Maximize customer satisfaction

B) Maximize sales

C) Maximize profits

D) Reduce business operating inefficiencies

The remaining questions relate to the described scenario bellow. Please read the scenario carefully and answer the following questions:

After an in-depth market analysis, Brand Z identifies that the objective value of their ready-to-launch product is equivalent to $45. Based on this assessment the company plans to set the product's retail price at $44.97. But after a quick focus group, the company realizes that the consumers do not fully recognize or appreciate the product's true worth, and report a willingness to pay $38 (max.) for the product.

7. If the company holds a value-based approach to pricing, what would they do about the identified discrepancy between objective value and perceived value (answer in one sentence)? (3 points)

8. If the company holds a demand-based approach to pricing, what would they do about the identified discrepancy between objective value and perceived value (answer in one sentence)? (3 points)

9. If the cost of goods sold of the product is $28 and the company intends to sell via indirect distribution (retail margins: 25% on selling price), what is the product's contribution margin if they set the retail price at $44.97? (3 points)

10. Identify one thing that the company can do to increase the contribution margin. (3 points)