Answer: a. Prestige Buyer
| 1] Competitor strategically weaker, price reaction too costly | i] Attack |
| 2] Competitor strategically stronger, price reaction too costly | ii] Adjust |
| 3] Competitor strategically weaker, price reaction is cost justified | iii] Ignore |
| 4] Competitor is strategically stronger, price reaction is cost justified | iv] Defend |
| v] Accommodate | |
| vi] Offend |
Answer: b. 1-iii, 2-v, 3-i, 4-iv