This short article in Inc. is very good at explaining strategies companies can use when price increases are needed.
- Do you notice small increases in prices of products you purchase? Why or why not?
- For you, what is the best strategy for a company to use when increasing prices? Explain why.
- Does the size of a price increase make a difference in how the price hike should be handled? Why or why not?
- Does it make a difference in the type of product or service in how price increases are handled? Explain. Provide examples.
Posted in Chapter11
Starbucks and Panera Bread now are making Pumpkin Spice Latte with real pumpkin, according to this article in Advertising Age. Starbucks made this change after hearing from customers and partners about the artificial ingredients.
- How important are ingredients to you, in drinks such as the pumpkin spice latte?
- Is it important for companies to respond to customers in this manner? Why or why not?
- Discuss the concepts of core product, expected product, and augmented product in terms of pumpkin spice lattes.
- How would you classify this product? Explain why.