Stricing Strategy Of Radioshack

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The pricing strategies used by RadioShack may be contributing to the downhill trend they are currently experiencing. As mentioned in the previous section, the company is in the declining stage of its life cycle. From what I observed while conducting research, the price of products is not perceived as consistent with value. One example of this was my experience at one of the few remaining RadioShack locations where a customer was returning a HDTV Antenna because it was not nearly as effective as the competitor’s product that was sold at a lower price point. The demand for the goods sold at RadioShack can be regarded as highly elastic. There are many substitutes for the products sold at RadioShack locations and many other options with regards to where the items can be purchased, which contributes to this elasticity of demand. RadioShack operates in a monopolistic competitive market, as there is some differentiation between the products sold here, and there is definitely competition over the prices the products are sold at.
One of the pricing strategies that was heavily used around the store, as well as almost all competitors, was odd-even pricing. It was difficult to find a product at any of the stores I visited to find a price that did not end in .99. The company was also using price lining, or selling a line of products of the same functionality with differing levels of quality at different price points. A good example was their line of speaker wire, which came in several
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