mkt case 3

mkt case 3 - Patrick Hill Assignment: Management Case Study...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Patrick Hill Assignment: Management Case Study 3 MKT 101 Instructor: Tom Passero 27 June 2011 PayLess Case 1) Which of the different product mix pricing strategies discussed in the text applies best to Payless’s new strategy? Product-Line Pricing is when management sets price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices. They price their products based on the differences in costumer perceptions of the value of the different features. PayLess carries the American Eagle brand, the Dora the Explorer brand, and the Rugged Outback brand. American Eagle’s prices are higher than the other two brands due to trendiness. These shoes are typically made from higher quality material and they have fashionable hip designs. They seem to be targeting a younger age group who want to have look stylish but also be comfortable. The Dora the Explorer brand has relatively low prices because they are marketed toward children. There is a limited amount of variation in the shoes themselves so the brand offers other products such as hats, bags, and umbrellas to get more exposure. The prices on these items are low because the parents do not want to spend a lot of money on the accessories in the brand. The Rugged Outback brand has a wide selection of products all relating to outdoor adventure. The prices for these products, from sandals to boots, are relatively low compared to their competition. These products are meant to not be stylish but get the job done, something they are supposed to be comfortable and durable. The difference on prices is based on the objection of the brand itself. 2)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

mkt case 3 - Patrick Hill Assignment: Management Case Study...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online