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Pricing: SBC

Read the overview below and complete the activities that follow.

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.

This activity is important because pricing is one of the most challenging tasks that marketers need to perform. Understanding the issues and options when pricing a product is crucial.

The goal of this activity is to test your understanding of pricing issues by applying chapter frameworks to the SBC example.

Pricing objectives are the desired or expected result associated with a pricing strategy. Pricing objectives must be consistent with other marketing-related objectives (positioning, branding, etc.) as well as with the firm's overall objectives (including financial objectives) for doing business.

As the video explains, SBC primarily targets experienced, knowledgeable cyclists that seek a particular biking experience. The price elasticity of demand for consumers within this target market is most likely ______

Multiple Choice

• less than 1.
• greater than 1.
• equal to 1.