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MAR3231 FSU Hopkins Exam 4.
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MAR3231 FSU Hopkins Exam 4.
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MAR3231 FSU Hopkins Exam 4YETI & its competitors - CORRECT ANSWER-Even though there are
competitors in the market, Yeti is confident in its overall brand
What do these companies have in common?
Michael Kors, Justice, Zulily, Coach, Burberry, Macy's & JC Penny - CORRECT
ANSWER-All of these companies are getting sued because of a pricing issue
- Regards outlet pricing
Outlet Model of Retail - CORRECT ANSWER-Used to send excess inventory
and flawed inventory to outlet stores to be sold at discounted prices
Current Outlet Model of Retail - CORRECT ANSWER-- Retailers start making a
separate line for outlet stores to make more money
- Use Anchoring pricing strategy
Anchoring Pricing Strategy - CORRECT ANSWER-Show the full price crossed
out above the discounted price → makes consumers more likely to make a
purchase
Problem with the Current Outlet Model of Retail - CORRECT ANSWER--
Products are never meant to be sold at the "full price"
- Has led to class-action lawsuits with these retailers
- Pricing is misleading
3 Pricing Options for Retailers - CORRECT ANSWER-1. Discount Orientation
2. At-the-market Orientation
3. Upscale Orientation
,Discount Orientation - CORRECT ANSWER-- Low prices as a competitive
advantage
- Consumers looking for the best deal → driven by PRICE
Discount Orientation: Amazon Example - CORRECT ANSWER-- Is a THREAT to
many retailers, particularly discounters
- Consumers trust that Amazon has the best deal, is the most convenient, and is
the cheapest option
Why is Amazon a threat to discount retailers? - CORRECT ANSWER-- Selection,
brand power, supply clain, and distribution
- Consumer behavior is already established
- Consumers enjoy shopping online vs. in-store
- Shipping capabilities (Amazon Prime)
- Far more advanced than competitors
Other Discount Orientation Examples - CORRECT ANSWER-Dollar General and
TJ Maxx
________ is the competitive advantage between Amazon and Walmart. -
CORRECT ANSWER-PRICE
Discount Orientation: Walmart Example - CORRECT ANSWER-- Walmart is
trying to buy a lot of companies to get into new markets and further develop
market share
- Currently having a hard time moving online
At-the-market Orientation - CORRECT ANSWER-- Average prices
- Not the cheapest, not the premium
, How to win with At-the-market Orientation - CORRECT ANSWER-- Do not
compete on price (can be damaging)
- Compete on one of the other 4 P's
- Experience, exclusive products and brands, customer service/expertise
- One-stop-shop
Example of At-the-market Orientation - CORRECT ANSWER-Home Depot &
Lowe's
Upscale Orientation - CORRECT ANSWER-Higher or highest prices
What are you paying for with Upscale Orientation? - CORRECT ANSWER--
Brand name
- Recognition
- Status
- Exclusivity (ex: limited time offers, collaborations)
Why do consumers pay a premium? - CORRECT ANSWER-Because we want to
be able to trust a product and minimize the risk of purchasing/using it
Upscale Orientation & Pricing: - CORRECT ANSWER-- Website shows the cost
of each component on the website → Transparent Pricing
- Directly to consumers
How does Upscale Orientation & Pricing work? - CORRECT ANSWER-Creates
trust between the retailer and the consumer
Examples of Upscale Orientation - CORRECT ANSWER-- Oliver Cabell
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