PRICING - Pricing HUEC 3043 Pricing Categories and Image...

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Pricing HUEC 3043
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Pricing Categories and Image Price levels are determined by retailers based on gross margin goals, profit, markup and retail image For example Gucci at Wal-Mart? Types of Pricing Policies Prestige Leader (ex/ BCBG) Competitive Everyday Low Prices High/Low Pricing
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Prestige Pricing Features elite, innovative, or exclusive merchandise Louis Vuitton Brookstone Sharper Image Luxury Brands Targeting a status-minded customer Exclusive products limits comparison shopping Specialized attention on customer service
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Leader Pricing Feature brand name products at a lower price than prestige to attract customers to purchases regularly priced items Macy’s Dillards Grocery Stores Products that are sold at a loss or very little profit are: Loss Leaders Target a customer who is status minded but also financially limited
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Competitive Pricing Feature products that are priced at similar levels as competitors Targets the comparison shopper Base competitive advantage on tangible services such as cleanliness, customer service, willingness to beat competitors prices, etc. Traditional Department Stores High-End Department Stores Grocery Stores
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Everyday Low Pricing Feature products sold at a range between lowest discounted (no profit) price and lowest competitors prices Rely on higher volume and lower markup
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PRICING - Pricing HUEC 3043 Pricing Categories and Image...

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