First implemented the strategy of lowering the price

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Reference no: EM132264493

So this is what we did. In order to satisfy my curiosity, I first implemented the strategy of lowering the price. That is what my mother in law also suggested. Most people, like yourselves, would agree that if a person would not buy something at $40, decreasing the price should improve the odds of making a purchase. So the following week we lowered the price to $30 and guess how many we sold???? ZERO. (The customer traffic and weather was approximately the same as the previous month) After a dismal week of selling scarves, I decided to try something different. The following week I did the opposite. I increased the price to $80...yes $80 and guess how many we sold???? EIGHT. (Same traffic...same weather) Can anyone explain what happened?

Reference no: EM132264493

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