Student Appreciation Program At Best Buy

As described previously, the point of The Student Appreciation Program at Best Buy is to help students save money on expensive purchases that they will be making for the next step in their lives, college. Therefore, Best Buy had to look at all aspects of bringing when it came to putting a number to the price tag for The Student Appreciation Program; it has to be reasonable so that a college student will have enough money to survive the semester with all the electronics and devices that they need throughout their college career. After analyzing and brainstorming this new service as a team, Best Buy has decided that they will be allowing a down payment on any product along with no interest rates. The company felt that having no interest rate

The price that the student must pay monthly will be determined by the actual price of the product that they desire to put under The Student Application Program at Best Buy and then will be divided amongst the months per academic year. For example, if a television that the student wants to have in their dorm/house costs $1,000, their down payment potentially would be $300 and the $700 will be divided by 9 months allowing the student to only pay around $77.77 per month. The more money the student can front right away as a down payment, the less the student will have to pay months. If the student reaches graduation and the product is still not paid for fully, the student will be fined double for whatever is left to pay off and will be forced to pay it on the spot. This is how best buy will make profits off of the

These limitations come from consumer and market behavior, some of which Best Buy cannot control. One elemental market factor that is out of the control of businesses is competition. Competitors aim to take away market share from other firms. For Best Buy, the main competition is against the Apple Company, Wal-Mart, and Amazon.com. Apple currently has student discount rates of 8% on all products. Wal-Mart also offers student discounts with 4% cash back rewards. Amazon offers students the benefit of Amazon Prime with a 6-month free trial, followed by 50% off of Prime after the trial is over. Best Buy also currently has a student discount program offering a certain dollar amount off of electronics. With the introductions of Best Buys Student Appreciation Program, these competitors could monitor our success and plan on launching similar programs to increase their revenue, seeing as Best Buy is already in competition with similar student