Increase in Retail Buying Power and its Impact on Pricing Strategies
DOI:
https://doi.org/10.23925/2178-0080.2017v20i2.36562Keywords:
Retail, Pricing, Brand Positioning, Buying PowerAbstract
The objective of this study is to analyze the positioning and pricing strategies of certain product categories and conclude if there are discrepancies between the pricing strategies that companies recommend and the price that is practiced in large retail chains, and hence their impact on the positioning of these products in comparison with the competition. Data collection consisted in data on positioning and pricing strategies of two brands of the company analyzed, and collection of secondary data on sales volume and average prices practiced in retail. The results revealed that the incorrect positioning of the products can negatively impact the profitability of some products and categories as well as damage the brand image. Factors identified as determining the impacts of price changes were price elasticity, price-quality relation and brand differentiation.
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