Luxottic Lowering The Price

Warby Parker has two main product lines. One is eyeglasses, the other is sunglasses. For the eyeglasses, Warby Parker use the method of Demographic segmentation that divides the market into segments based on the targeted customers’ income and occupation. They are targeted at the young people who studying at the college or the people who have low or unstable income. Since Luxottica dominates brick and mortar glasses sales, at 49.5% market share. It will cost around $500 to buy a new pair of glasses, most of the college students find it really expensive to have a high quality and fashionable prescription glasses. Warby Parker evaluated each market that the company is going to enter,

The recent Time Magazine article "Post-Sandy Price Gouging: Economically Sound, Ethically Dubious," evaluates the recent price gouging by businesses during Hurricane Sandy (Futrelle). Examples of price gouging include raising prices on batteries and gas to astronomic levels, with the knowledge that the captive public audience will purchase the products regardless of the price. Businesses that have raised prices include bodegas, supermarkets and gas stations. Although such price gouging is undeniably an economically profitable business measure, the article argues that it is ethically dubious since it takes advantage of the public.

I also agree with you in how you stated that the products price and value tie into one another especially when consumers are trying to determine what would essentially be the best option that meets their criteria of value. Likewise, it is important for companies to find significant and unique methods in which to make their product stand out and be the option of choice. Consumers want a product that is highly regarded but that also qualifies with price. They want to know that what they are paying for is of high standards and quality and worthy of the money being spent. Therefore, they look into every possible option to determine if the product meets brand loyalty and has the appeal to be different from their competitors items. You are

However, I don’t agree with the fact that the government place rules on a merchant product. In the article, Zwolinski brought up the point on what is a “reasonable” price, and how does that vary. The government can use the word “reasonable” to their own benefit. Zwolinski also share that price gouging is very unfair on businesses. Price gouging can perhaps cause a business to not make a large profit. However, is a large profit for a business more reasonable than someone losing their life due to price gouging? Does a large profit for a business account for how many store owners can take advantage of many in low income minimum wage workers and

Unmeasured quality change – if a goods quality goes down, but remains at same price – then the dollar is worth

Odd-even pricing – Using numbers to trick and fuck people into thinking goods are cheaper

In other words most people would prefer to pay more and buy a more expensive product thinking that by paying more it is also superior to the other products of the same category that are cheaper. However, although the phrase “you get what you pay for” might have some validity in it that is not always the case, due to the fact that sometimes the products that might be cheaper are just as good as the competitor brand which has a higher price. In this instant it would be logical to buy the cheaper product however most human beings would opt for the expensive product, assuming that it is of better quality than the cheaper product. On the other hand, Dan Ariely rebuffs this claim and states, “We choose what we like, not what's best.” Sometimes humans don’t make decisions based on their preferences; instead they choose what they want and that leads to a process of rationalisation in order to get what they really want. However, they still want to give the impression that they were acting according to their preferences.

Based on the information provided, Knights Apparel risks having lower profit margins than usual without marking up higher prices for wholesale buyers; this puts Alta Gracia in danger for long-term operation with higher wages. Knights Apparel will soon discover if their customers are loyal to their brand enough to support Alta Gracia mission through higher prices compared to premium brands such as Nike. Consumers don’t only want good quality, but good quality at low

Warby Parker is a designer eyewear brand found in 2010, which has shifted the eyewear market by simply questioning why the cost of a pair of glass is same as an iPhone? Warby Parker has realized that the Luxottica, who own a huge market share in the eyewear industry, has been trying to control the price of designer eyewaear by keeping extremely high prices that are not affordable to all customers. This long-established industry high price model has been removed by Warby Parker by seeing things in a new perspective (Patino,2017).

Milo is considered as a product of monopolistic competition market because there are many competitors of Milo in the market. Some of the competitors include Vico, Ovaltine, Horlicks, Dutch Lady and Nutrilite. Secondly, monopolistic competition market has free market entry and exit. This means that new competitors can enter the market easily and Milo may be easily force out of the market by its competitors. Monopolistic competition also needs a lot of money to spend on advertising to convince customers to buy their products. In fact, Milo sells all its products throughout the world and higher popularity compared to other chocolate drinks. According to the research, loyal

The goal here is to keep the prices down, keep the people buying and keep the materials flowing. A key strategy business use to keep prices down is to externalize costs. That means that the price tags on consumer products don’t capture the true costs of producing and distributing all these stuff.

It is an example for “Price as a cue to quality” (Iacobucci, 2010, p. 112).When Optima’s customers experience the convenience of the service; they will gladly accept the higher prices.

“Always low prices”, is the first thing you think of when you think about one of the most successful companies around the world, Wal-Mart. For years they stand as a well know company due to their everyday low prices and variety of products. Their mission statement is “Saving people money so that they can live better”. They have chosen their mission statement wisely yet there is a lot of controversy when it comes to this International Company.

competition and high prices. It costs hundreds of dollars to buy a pair of sunglasses and only about 30$ to produce the same pair of sunglasses. Luxottica also has contracts with major companies such as Coach, Ralph Lauren, Channel, etc. Luxottica also owns Sunglasses Hut which is a very popular place to buy sunglasses. An interviewer asked the creator of Luxottica a bunch of reasonable questions, in which he avoided. One of the questions was “Are consumers happy with the expensive prices? Should sunglasses really cost that much?” The owner of Luxottica replied saying that consumers

Quite often, consumers purchase goods and services based on their perceived need. Upon making the decision that a need is present and a solution is available consumers are more equipped to react to that need. Although previously perceived that consumers will normally accept prices as presented by suppliers that remains to not be the case. Consumers assess and process prices based on past purchases and other psychological process they went through previously such as persuasive marketing strategies, accessibility of the goods or services and possibly information gathered from prior purchasers of a product. There are countless options that are available to consumers. Consumers are then faced with the choice of choosing the product that best fulfills their need at that given point. Consumers who are knowledgeable regarding prices will be aware of the approximated price for products (Zhao, Zhao & Deng, 2015).