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Chapter 22

ECO 211 Chapter 22: Case 22 Target

Course Code
ECO 211
Lorca Maria

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MKT 320
Case 22: Target and its New Generation
1. Assess the role of consumer expectations in Target’s success as a major discount
Target has been able to offer these exclusive high-profile labels, whether apparel
and housewares, for moderate prices, helping the retailer boost its bottom line.
They have succeeded where others have failed because they were able to offer
these items at moderate prices where others weren’t able to bring the prices down,
shying away customers.
2. What differentiates Target’s new retail partnership model from its longstanding
partnerships with top designers? What are the relative strengths of each?
By having these specialty stores within a store, they are separating the specialty
labels from the rest of the merchandise. These will attract customers to the mini-
store and also since its separate from the rest of the merchandise the customers
will be more willing to pay if prices are a little higher. This is different from their
longstanding partnerships because these mini stores will be constantly changing
every six weeks to keep customers excited about the constant flow of new
3. What explains Target’s ability to attract top designers and high-end specialty
shops as retail partners?
Top designers are attracted to partnering with Target because if the success it has
had with designers in the past and the new set of customers they can attract.
Target customers aren’t always the same customers that will buy these designer’s
items, but if the customers are happy with their target purchases they may be
inclined to spend the extra money and buy more from the designer in the future.
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