Answer to Question #253541 in Marketing for Lisah

Question

The Sneaker Shack offers various purchase options through their physical store and
online. Considering this, complete the following table by identifying which pricing
strategy (i.e. cost / value-based / competition based pricing) would be best for the
specific example given (1 mark each) and provide a motivation for your answer (1 mark
each The Sneaker Shack offers various purchase options through their physical store and
online. Considering this, complete the following table by identifying which pricing
strategy (i.e. cost / value-based / competition based pricing) would be best for the
specific example given (1 mark each) and provide a motivation for your answer (1 mark
each

Answer 1

Pricing strategies help the company to attain market share and competitive advantage. Pricing technics differ from one company to another and change in a wider economic condition. In the case of sneakers shack laundry company, the pricing strategies are set based on cleaning quality chosen by the customer. The company also offers promotions and discounts on their cleaning services. The sneakers are normally cleaned, repaired where necessary, and returned within 48 hours, the additional price of R70 will be applied in case the client wants the services done in less than 48 hours. The pricing also differs based on the customer options, for example, basic cleaning costs a little as R140 while R260 for red detail such as cleaning, and regarding the sneakers.

However, the sneaker company promotes its company by offering free sneakers to young adults who involve in active recreational activities such as sports, and gym to increase the company market share.