Pricing Strategy
The science of pricing must consider company-set performance metrics. Effective pricing strategies take into account the big picture, including how the business processes affect value creation and communication.
Respond to the following:
Part 1: Apply Data to Strategy
What type of data does the typical retailer have regarding customers?
Compare that to retailers that track purchases with customer loyalty cards.
How does the retailer use the data to optimally price goods in its units?
Analyze how pricing strategies apply (or do not apply) to the classical economics theory of supply and demand.
Discuss other factors that affect the price point purchase behavior.
This section of the paper should be 3 pages in length and use research from the library's full-text databases. Failure to use the articles will result in a lower grade for Part 1.
Part 2: Consumer Application
Select an example of your own purchase decision, like deciding to eat out at a restaurant.
Map all of the individuals involved in the decision-making process (parents, kids, friends, etc.), and identify their contribution to the decision process.