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Question: What is the difference between a price and a cost?
What does it mean when we say "Price can be surrogate indicator of value."
And discuss this:
Research shows that consumers have product picks that they watch which draw them to stores. It is too mentally taxing to pay attention to everything so we focus on about 100 products. Thus, people see the price on that "trigger" item and go to the store to get that product. E.g. The price of milk or eggs can draw customers to go to a non-normal grocery store.
The price of a blu-ray player drew people in such numbers to Wal-Mart a couple of Christmas' ago that several people were trampled to death trying to get a player. Few customers bought only the blu-ray player.
What kinds of items do you see constantly on sale at different categories of stores?
What types of items do you look for price deals? What types of products are you adverse to price discounting?
Why is price discounting so attractive that people will buy what they do not need simply to "save"?
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What does this mean for the organization (what steps might management need to take, how does it impact overall strategy)?
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