Natural foods stores typically use premium pricing because they offer mostly organic, higher quality products. Additionally, customers at natural foods stores typically have more disposable income than those at supermarkets. As seen in Table 1, an 8-ounce Natureview yogurt sells for $0.74 in a supermarket while that same products costs $0.88 in a natural foods store. The manufacturer’s selling price for this type of yoghurt quite similar, and the primary price disparity arises in the natural foods store’s large margin of 35%. Natureview’s brand image also plays a large role in what kind of customer would purchase the product; that is, customers at natural foods stores may favor the yoghurt company’s exclusivity at the organic markets and would not want to buy it in a normal grocery store. The customer demographic and disparity in sales margins are the primary differences between the supermarket and natural foods
Natural foods stores typically use premium pricing because they offer mostly organic, higher quality products. Additionally, customers at natural foods stores typically have more disposable income than those at supermarkets. As seen in Table 1, an 8-ounce Natureview yogurt sells for $0.74 in a supermarket while that same products costs $0.88 in a natural foods store. The manufacturer’s selling price for this type of yoghurt quite similar, and the primary price disparity arises in the natural foods store’s large margin of 35%. Natureview’s brand image also plays a large role in what kind of customer would purchase the product; that is, customers at natural foods stores may favor the yoghurt company’s exclusivity at the organic markets and would not want to buy it in a normal grocery store. The customer demographic and disparity in sales margins are the primary differences between the supermarket and natural foods