RMG 200 Study Guide - Midterm Guide: Burton Snowboards, Markdown, Holt Renfrew

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Value: relationship of what a customer gets (goods/services) to what he or she has to pay for it. Retailers can increase value and stimulate more sales by either increasing the perceived benefits offered or reduce pricing. Cost cutting issues might include: buying merchandise offshore to maintain higher profit potential due to higher canadian dollar, cutting packaging costs by including three languages english, french, spanish to serve all. North american markets: retailers and suppliers partnering to maintain competitive prices, using price optimization software technology to sell as much inventory as possible at the highest possible price. Retailers must consider the following in order to set prices that will maximize long-term profits: Competition because customers shop around and compare prices. Determining the retail price by adding a fixed percentage to the cost of the merchandise (aka cost-plus pricing) Prices are based on what customers expect or are willing to pay. Allows retailers to determine which price will give them the greatest profit.

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