Sam Walton, founder of Walmart, had an early strategy for growing his business related to pricing. The
Question:
Sam Walton, founder of Walmart, had an early strategy for growing his business related to pricing. The "Opening Price Point" strategy used by Walton involved offering the introductory product in a product line at the lowest point in the market. For example, a minimally equipped microwave oven would sell for less than anyone else in town could sell the same unit. The strategy was that if consumers saw a product, such as the microwave, and saw it as a good value, they would assume that all of the microwaves were good values. Walton also noted that most people don't buy the entry-level product; they want more features and capabilities and often trade up.
Step by Step Answer:
ISE Business Foundations A Changing World
ISBN: 9781260565805
12th International Edition
Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell