Answer to Question #259507 in Marketing for Mohammad tahir

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).

(8) Example Identify whether cost / value-based or competition based pricing is used (4x1) Motivation for decision of pricing strategy (4x1) 1.2.1 The classic clean option where a customer brings shoes to The Sneaker Shack 1.2.2 Extra R70 to have same day cleaning and delivery of shoes 1.2.3 Pricing the Deep clean option based on what Levingers are pricing to clean shoes 1.2.4 Pricing of the “pick-up and delivery” option purchased online

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.