Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i am taking managerial macroeconomic and i have a strategy session which i need to read and analyze the session from the book and we

i am taking managerial macroeconomic and i have a strategy session which i need to read and analyze the session from the book and we need to find one example from todays economy give the company names and situation how it will be related to this this strategy. Please see attached the strategy session for Life during a market movement and explaining what happen and please provide a example form todays economy how related to this session.

I need two paragraph explanation.

Thank you,

image text in transcribed
THE MARKET DEMAND CURVE STRATEGY SESSION: The Customer Is Always Right-Wrong! Some customers are viewed as angels. They pur- How do you get rid of the devils? You can't iden- chase the big-ticket, big-markup items, want them tify them and then not let them in your store. That right when they come out, and want each one of them. would violate antidiscrimination laws. But you can And some customers are viewed as devils. They wait eliminate the programs that draw them to your stores for loss leader sales litems sold at a loss designed to land make sure they are not the same programs that entice consumers to the store, where the store hopes draw the angels). For instance, stop direct mailing they will buy many other items-the devils only buy to the customers identified (by their past purchases] the loss leaders); buy items, return them, and then as devils; charge customers a restocking fee of 15% rebuy them as previously owned items at a discount; of the purchase price for returned items; prohibit buy the most discounted items and then resell them reselling returned items on the Internet or at another (eliminating their customers from the store's pool); store rather than at the original store; and break all scour the Internet, circulars, and newspapers for lies with Internet sites (FatWallet.com, SlickDeals the store's competitors' low prices and then make the .net. TechBargains.com) that tipped the devils off to store honor the competitors' prices because of the Best Buy bargains and buying strategies that Best "we will not be undersold" pledge of the store; send Buy regarded as having a negative impact on profits. in for rebates; and so on. The financial services sector has solved this problem Big box electronics store Best Buy has had by catering to their angels (free checking for main- enough of the devils' tactics. Best Buy estimates that taining a certain balance] and penalizing the devils 20% of its store visits are by devils. And they'd like Itransaction fees for ATM use, fees to deal with a the devils to get out of their stores. They want to fire teller, check fees, and so forth). some of their customers! On the other hand, they have identified the true angels-the 20% of their cus- Source: "Analyzing Customers, Best Buy Decides Not All Are tomers that generate the bulk of their profits. Welcome, " The Wall Street Journal, November 8, 2004, p. A-1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Policies For Environmental Protection

Authors: Paul R Portney

1st Edition

1317310144, 9781317310143

More Books

Students also viewed these Economics questions

Question

8. How can an interpreter influence the message?

Answered: 1 week ago