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Situation Analysis Paper

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The setting of the store although important for customer decision-making, it is the price selection of the items that is the main attraction that invades customers to enter our store. Many of our customers would browse around the store and leave, to later return and purchase the item at our store. This is due to our pricing that when comparing to others store we offer lower prices. Competitive pricing is often used to frame price deals as more attractive (Kopalle & Lindsey 2003, p. 225). Most of store X products have a price sale 25% off and the marketing team makes sure that customers know about its sales. The weekly booklet that we receive every two weeks from the headquarters, inform us about every change that needs to be made in the store, …show more content…

I previously mention that the entire luggage section has been on 40% discount since Christmas. In that period of time new collections of luggage has arrived and they were displayed at a full price. Customers always preferred the discounted luggage especially when the full price items were the same luggage, but in different color. However, some customers would still purchase the luggage at a full price not knowing that the item would be soon on discount. It is a cycle, retail shops receive new items try to sell at a full price and if not many customer purchase place the item on discount. Sometimes I would see a new selection on luggage arrive and as fast as two weeks the same item is on discount. There were also times that I was sure that a leather wallet was on discount when customer asked to find out that there were back to full price and vice versa. Items are several times put on discount and than back to full price as retails stores attempt to sell its items at high and lower price both profitable methods. Once while organizing the store and separating items between 25% discount and further markdown, I ask one of my colleagues if the handbag was on discount and she replayed that I should place the handbag with full price items. I reply asking where are the full price items located and she said that she meant with the 25% off items. It seems that the workers also see the 25% discount as full price items. According to a new study made by non-profit center for the studies of services states that items that are constantly on “sale” are not always a special offer instead the discount price is actually the regular price (Raedle 2015). However, on big sale clearance the prices are actually discounted, as prices would go as low as 70%. Over the months I have noticed that there is a sale cycle from up

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