Assignment:
Read "Planet Fitness: Pricing for Success, " on pages 459-460 of the text. Thoroughly answer the following questions:
1. What benefit do customers receive in return for the sacrifice they make when buying a membership at Planet Fitness?
2. How does this benefit-sacrifice ratio give Planet Fitness a competitive edge in its industry?
3. Given its pricing strategy, why is it essential for Planet Fitness to continually attract new customers?
4. Do its high-end pricing competitors face the same need? Why or why not?