MAR3231 FSU Hopkins Exam 4 Questions And Answers (Updated And Verified)

MAR3231 FSU Hopkins Exam 4 Questions And Answers (Updated And Verified) YETI & its competitors - answerEven 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 - answerAll of these companies are getting sued because of a pricing issue - Regards outlet pricing Outlet Model of Retail - answerUsed to send excess inventory and flawed inventory to outlet stores to be sold at discounted prices Current Outlet Model of Retail - answer- Retailers start making a separate line for outlet stores to make more money - Use Anchoring pricing strategy Anchoring Pricing Strategy - answerShow 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 - 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 - answer1. Discount Orientation 2. At-the-market Orientation 3. Upscale Orientation Discount Orientation - answer- Low prices as a competitive advantage - Consumers looking for the best deal → driven by PRICE Discount Orientation: Amazon Example - 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? - 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 - answerDollar General and TJ Maxx ________ is the competitive advantage between Amazon and Walmart. - answerPRICE Discount Orientation: Walmart Example - 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 - answer- Average prices - Not the cheapest, not the premium How to win with At-the-market Orientation - 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 - answerHome Depot & Lowe's Upscale Orientation - answerHigher or highest prices What are you paying for with Upscale Orientation? - answer- Brand name - Recognition - Status - Exclusivity (ex: limited time offers, collaborations) Why do consumers pay a premium? - answerBecause we want to be able to trust a product and minimize the risk of purchasing/using it Upscale Orientation & Pricing: - answer- Website shows the cost of each component on the website → Transparent Pricing - Directly to consumers How does Upscale Orientation & Pricing work? - answerCreates trust between the retailer and the consumer Examples of Upscale Orientation - answer- Oliver Cabell - Gucci