Author Question: List and describe the levels of price points and give an example of a retailer for each price point. ... (Read 56 times)

lunatika · **on:** Sep 11, 2018

List and describe the levels of price points and give an example of a retailer for each price point.

What will be an ideal response?

Question 2

Using your answers from question number 1, if you were in Chase's situation, which vendor would you choose and why?

What will be an ideal response?

juicepod · **Reply #1 on:** Sep 11, 2018

Answer to Question 1

The successful selling of merchandise depends on the price point, which must be in line with
what the consumer is willing to pay for the product. Price point is the retail price of merchandise.
Knowing what goods are worth at retail is an integral and critical skill of a buyer. Retailers
develop merchandising concepts based on one or more of eight price points. Most stores cross
price point lines, but not to an excessive degree. Merchandise in the discount price point is low
quality, disposable, and sold in large quantities in discount stores, like Walmart. Budget price
points appeal to a large number of consumers. Sold in stores like Sears, merchandise in this price
point is a deviation of goods that have reached the culmination stage of the fashion cycle.
Moderate price points cover most of the consuming public and include most products sold in
stores such as Kohl's including brands like Levi's. Considered by the average consumer to be
designer merchandise, goods at better price points are found at Macy's and Nordstrom and
include brands like Jones NY. Merchandise in the contemporary price point is trendier, appealing
to a young and stylish consumer at a slightly higher price point than better. Bridge is the price
point that bridges the gap between better and designer price points. Many designer labels, like
Donna Karan, also produce bridge lines. The designer price point is the ready-to-wear line of
many designer labels. Couture designers often create ready-to-wear lines in the designer price
point. The ready-to-wear lines pay the bills for the couture lines. Finally, the pinnacle of price
points is couture.

Answer to Question 2

It is recommended that Chase choose New York Lighting because he can get the most benefit by paying for the merchandise before the discount deadline dates expire.