The fashion industry
The fashion industry entails a different pattern in marketing and pricing subject to the perceptions of customers who allude value to specific attributes in the industry. Two services in the department that I have lack of reference price include personal shopping and studio services. Placing myself in the role of the service provider for the mentioned initiatives capacitates me in developing their pricing strategies coupled with value definitions of the customers and the appropriate type of enactment.
I believe that customers in the industry would entail value definition of customers who must acquire everything they want and those who would get the quality for the price they pay. The first group involves the subjects assessing initiatives and seek the highest amount of benefits against all costs they perceive they will incur. The second persons capture the concerned party with the trade-off detailed in the funds issued and what they receive in return. The case of a personal shopping service rendition is the assistance of a customer to make ideal choices when purchasing garments facilitated by knowledge of trendy fashion. The studio services entail assisting celebrity stylists selecting fashionable clothes and props. The definitions of the two and that of value depicts the personal shopping drive capturing the customers who must acquire everything they want while the studio services entail customers who seek to get the quality for the price they pay.
The first aspect in developing a price strategy is depicting the goal which has the personal shopping case seeking a larger market share while the studio initiative is attempting to increase profitability. Step entails market pricing analysis which would get assistance from the value definitions for customers that work for each aspect. Phase 3 involves analysis of the target audience which is equally factored above as the first scenario seeks the populous, especially loyal customers rearing to adorn trendy styles while the second case has the celebrities who require to stand out from the crowd as they influence their entourage such as fans. The fourth step is the profiling of competitors, which has both facing steep competition from high fashion houses. The final step involves assessing the listed assessment to create a pricing strategy and execution plan. I daresay the personal shopping case would be valid through applying price bundling. It entails converging services to sell as a package to simplify the process. Studio service would factor premium pricing. It reflects a higher price for high value.
The new service is the delivery of goods and services. It entails the price of the number of products purchased as the reference price as higher discounts are made on substantial purchases as compared to the low cases. The mentioned service would capture customers who think they must get everything for that which they buy. The initiative achieves the goal of convenient drop-off of the purchased items as the first step in developing the pricing strategy. The second step involving market analysis points to individuals favoring low delivery costs. The objective in such pricing is seeking competitive parity, which alludes to setting amounts close to competition. The profiling of the competitors’ landscape which entails the firms offering delivery services at a lower cost. The substitute approach to attacking the issue is consideration of non-monetary factors such as time. Timely delivery ensures steering off competition as it showcases efficiency. The last case is settling on a pricing strategy and execution plan, which in this case would be competitive pricing. It involves setting the price at levels more-or-less as competition.
The services capture value definition, which captures customers who must acquire everything they want and those who would get the quality for the price they pay. They allude to particular customer behavior in the fashion industry, such as higher pricing creating a perception of high value leading to multiple purchases.