On your blog, provide an example of how a vendor groups products on the shelves, counters, or wall space to get consumers to NOT price match (e.g., during the Oscars, you’ll see popcorn buckets, popcorn kernels, and seasoning salt placed near the cash register at inflated prices). Describe the grouped items, list their prices, and locate the equivalent products elsewhere in the store at the lowest price available. How are the concepts of price sensitivity and price-targeting deliberately used by these vendors to increase sales? What are possible leaks? Include photos of the items and their prices.
At the IC bookstore I observed the store's sweatshirts. In the center of the store they had the name brands, like nike and under armor on sweatshirts with the Ithaca College logo. These brands are a lot more expensive and attract customers. In the back of the store stacked on the racks there was hoodies with the same Ithaca College logo but no name brand on the top of it. The sweatshirt with the name brand cost $64.99 and the other shirt cost only $34.99. The store preciously put the more expensive hoodie in the middle of the store where everybody has to walk by. While the cheaper sweatshirt was placed on the side of the store towards the back. Since the price sensitive buyer has to walk past the more expensive hoodie they may be more likely to buy the more expensive one because its in a more convenient spot and the brand is kind of like an insurance policy for good quality. One possible leak is that there is a store in downtown Ithaca that sells Cornell and Ithaca apparel for a lot cheaper than the book store. The only thing is its out of the way and inconvenient for the customer to go down town when they are already on campus and can get the product right away but for more money.
Professor Silva I tried uploading my photographs many times but they kept freezing my computer, in the end it didn't work.
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