Case Study 3 Pricing Strategy Payless Shoesource: Paying less for fashion Table of Contents BACKGROUND…………………………………………………... 3 OBJECTIVE……………………………………………………….. 3 PROCEDURES……………………………………………………. 4 SUMMARY OF FINDINGS………………………………………. 4 CASE STUDY QUESTION: 1…………………………………….. 4 CASE STUDY QUESTION: 2 …………………………………….. 5 CASE STUDY QUESTION: 3……………………………………... 6 CASE STUDY QUESTION:
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Answers – Payless ShoeSource case study 1. Which of the different product mix pricing strategies applies best to Payless’s new strategy? To my view they are using mix of different strategies. Firstly‚ skimming pricing. This is about selling a product at a high price‚ sacrificing high sales to gain a high profit‚ therefore ‘skimming’ the market. I see that they have invested a lot of money to hire top notch designers‚ rebranding effort like remodeling stores etc. There needs to be some mechanism
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PAYLESS SHOESOURCE Paying Less for Fashion BACKGROUND Payless ShoeSource‚ Inc. is the largest footwear retailer in the United States. The company operates about 4‚700 stores in all 50 states as well as Puerto Rico‚ Guam‚ Saipan‚ the U.S. Virgin Islands‚ Canada‚ Central America‚ the Caribbean‚ Ecuador‚ and Japan. It also sells footwear via the Internet at www.payless.com. Payless has built its success by offering a large selection of shoes at very low prices‚ most selling for less than $15
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Payless ShoeSource is an American discount footwear retailer founded in Topeka‚ Kansas in 1956 by brothers Louis and Shaol Pozez that is owned by Collective Brands‚ Inc‚ on a revolutionary idea - selling shoes in a self-select environment. In 1961‚ it became a public company as the Volume Shoe Corporation which merged with the May Department Stores Company in 1979. More than 50 years later‚ Payless continues the self-select model combined with leading customer service to provide a fun and engaging
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Payless Shoe Source is a discount footwear retailer with over 4‚572 retail stores in 15 countries. This company does not only focus on providing different fashion possibilities for the family at a great price‚ but distinguishes themselves by offering an engaging‚ easy-to-shop experience and outstanding customer service. Our group chose this company to blueprint because it has a very elaborate customer service process. This company focuses heavily on providing the customer with a great shopping experience
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2.) Psychological pricing and reference pricing both apply well to the strategy that payless employs. Before purchasing‚ consumers think about which prices are suitable for specific products that are available. When consumers see a high priced product‚ they would expect to see the product to have certain characteristics that stand out from items that are available at a lower price. Payless catches the buyer’s attention by displaying products as a very high quality product‚ so the consumer assumes
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pricing.In this case‚ the product mix pricing strategy Payless use is product line pricing . Product line pricing is setting the price steps between various products in the product line based on cost differences between the products‚customer evaluations of different features and competitor’s prices.Payless have strategy product line‚ from one comprised almost entirely of store brands to one dominated by well-known national brands. Payless now sells shoes under numerous brand names that it either
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case‚ Payless used product line pricing strategy. A product line pricing strategy is a strategy in which the management sets the price steps between various products in a product line based on cost differences between the products‚ customer evaluation of different features and competitors prices. Payless used to have only limited lines of shoes and began to lose their customers. However‚ the company hired to CEO‚ Matt Rubel and he started to redesign the Payless. He changed the image of Payless‚ dusty
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‘Less is more’ in 90s fashion As we reflect on fashion history‚ there is not always a distinctive shift from one decade to the next. When transitioning from the 80s to the 90s‚ this was not the case‚ as there was an evident changeover from conspicuous consumer to ‘less is more.’ When hearing this phrase and applying it to fashion‚ I think it can be viewed in two ways. The more literal interpretation can be restated as it is preferred to have either a more minimalistic and simple outfit‚ or that
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SWOT Analysis: Payless Shoe Source Michelle Parker Management 303/RM111 Mrs. Rhonda Jordan March 19‚ 2012 Payless Shoes history‚ begin over 56 years ago‚ by two well known cousins name Louis and Shoal Pozez in Topeka‚ Kansas. Louis and Shoal wanted to make fashionable shoes accessible to customers who didn’t want to spend a lot of money. They originated the concept of putting the shoes on the shelves where customers could browse the styles and sizes. Our product and our self-selection
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