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Marketing: Pricing Strategy

Assume that you have been hired as the assistant manager of a local store that sells fresh fruits and vegetables. As you look over the store, you notice that there are two different displays of tomatoes. In one display the tomatoes are priced at $1.39 per pound, and in the other the tomatoes are priced at $1.29 per pound. The tomatoes look very much alike. You notice that no one is buying the $1.39 tomatoes. Write a report explaining what is happening and give your recommendations for the store's pricing strategy

-answer should be 3-5 sentences.

Solution Preview

If two brands of tomatoes look exactly the same in size and appearance, people would obviously choose to buy the cheaper variety. This is because people tend to buy things of daily usage cheap, so that they can spend ...

Solution Summary

Assume that you have been hired as the assistant manager of a local store that sells fresh fruits and vegetables. As you look over the store, you notice that there are two different displays of tomatoes. In one display the tomatoes are priced at $1.39 per pound, and in the other the tomatoes are priced at $1.29 per pound. The tomatoes look very much alike. You notice that no one is buying the $1.39 tomatoes. Write a report explaining what is happening and give your recommendations for the store's pricing strategy

$2.19