Problem
Pep Stores has decided to change their retail pricing strategy. They want to attract more middleincome customers to their store while still appealing to their existing low-income customers.
1. What are the various pricing strategies that Pep Stores can use to attract the new middle-income customers but also satisfy their existing low-income customers? Discuss these different pricing strategies in detail.
2. Calculate the mark-up percentage (at cost and at retail) for a shirt that costs R180 and retails for R340 at Pep Stores.