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.