Competitive Pricing Responses
Students need to identify what would be the most appropriate pricing reaction for various market situations and competitive actions.
EXCLUSIVE MEMBER ACTIVITY
Pricing
Responding to Competitor Pricing
While it is generally acknowledged that it is best to stay out of a price-cutting war, sometimes competitor actions will force you into one. In this activity, students need to counter when one of their competitors cuts their prices – how will they respond?
EXCLUSIVE MEMBER ACTIVITY
Making a Price Decision
In this activity, the task is to set the price for a new home-delivered water company. To complicate matters, there are a few different viewpoints on the best pricing approach.
How Important is Price?
In this exercise, students are presented with eight product alternatives, as they would find in a supermarket environment. As they will see, price is simply one aspect of the consumer’s perception of value.
Pricing and Positioning
In this activity, there is a key pricing decision to be made in the two situations presented. Keeping in mind the firm’s/brand’s positioning, students consider whether these decisions are logical.
EXCLUSIVE MEMBER ACTIVITY
Cost Leadership Strategy
This activity highlights some of the practices that Aldi Supermarkets have adopted to achieve a cost leadership position and provide ongoing longer prices to customers.
Pricing Against Aggressive Competitors
Retailers often face the challenge of deciding between ‘everyday low pricing’ and ‘high-low’ pricing. The student task is to determine the best pricing approach.
A Pricing Strategy Success?
In this case study, the student task is to determine whether the firm should continue with its current strategy (which is mainly priced-based) or does it need to adopt a new approach?
EXCLUSIVE MEMBER ACTIVITY
Allocating Fixed Costs (Product Profitability)
Allocating fixed costs to products, in order to more fully assess product profitability, can be determined in different ways with different outcomes. In this simple example, students assess the impact of allocating fixed costs to its products profitability.
EXCLUSIVE MEMBER ACTIVITY
J.C. Penney’s Cost-cutting Transformation
In this mini-case, students review the efforts of the J.C. Penney department store to more efficiently compete on price, primarily underpinned by a cost-cutting program. But is this the best approach?