Imagine that you are on the pricing team at Move. It is August, a big month for back to school sales, and Cali has just made a second price cut on school uniforms. You did not respond to the first price cut and then sent a message–by offering a temporary promotion on one product category important to Cali–that you would retaliate. What would be the worst next move your Move team could make?

 
 
 
 
 
 

That’s right. Enacting broad price retaliations would not be a wise next step. Instead, your team should make sure you’ve exhausted non-price moves and then take surgical price actions.

Other Questions Of This Category

Imagine that you are on the pricing team at Move. It is August, a big month for back to school sales, and Cali has just made a second price cut on school uniforms. You did not respond to the first…

How might Sparkle best evaluate their market position and possible options in the uniforms category for the various customer segments?

Cali would like to capitalize on its success in sporty clothes for girls and increase its volume in sporty clothes for boys. Sparkle, who shares the sporty boy grassland with Cali and Move, has had…

How might Cali best evaluate their market position and possible options in the stylish clothing category for the various customer segments?

Review: Your company manufactures jewelry and t-shirts related to popular movies and television shows. Your pricing team is reviewing current and recent changes to pricing and business practices.…

Two rival companies sell handmade hammocks in a seaside town. This summer, they've been competing for the business of tourists by cutting or raising prices. Using your knowledge of the Prisoner's…

You own a pet grooming company, and you've just constructed a competitive pricing framework. What conclusions could you draw?

Review: You own a pet grooming company, and you've just constructed a competitive pricing framework. What conclusions could you draw?

You work for a company that makes luxury watches. The prices of watches in your product line could best be described as ranging from moderately to super expensive. Your team is considering whether or…

As home surround sound stereo systems reach a mature market phase, manufacturers are finding that the systems aren't as popular with consumers. How might they respond and adjust as demand for the…

Your company makes organic and all-natural cleaning products, and you've expanded into personal care items for babies and adults. You'd like to have the retailers you work with carry these new…

You and some fellow graphic designers have created software that helps people create infographics using a series of templates and suggested layouts. You have had a limited release, and you are still…

Take a look at the chart representing the competitive landscape of three companies who sell various types of children's clothing. How would you best describe the boys' uniform market?

Book publishing companies offer national retailers special promotions and discounts that they don't offer to independent booksellers. How likely is it that this type of pricing arrangement is a…

A large company that designs gaming computers is about to release a number of new products and product design features. Which of the following would most likely be considered a possible price…