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PRICE by Mind Map: PRICE

1. OBJECTIVES

1.1. Maximise revenue

1.2. Demonstrate product-quality relationship

1.3. Maintain status quo of being a premium brand

2. CUSTOMER VALUE BASED PRICING

2.1. Perceived value is not always accurate - subjective based on the consumer

2.2. High price targets niche markets

2.3. Increases focus on customer services

2.3.1. Value-added services

2.3.1.1. Repair program, teach customers how to repair their own jeans

2.3.1.2. Develop app to accurately record measurements for online purchase

2.3.1.3. Recycling program, customers can return old clothes for upcycling

2.4. High prices are justified by the quality of products

2.5. Increases brand value

2.6. Promotes customer loyalty

3. COST BASED PRICING

3.1. Does not take into account the value of the product

3.2. Provides full coverage of costs and a consistent rate of return

3.3. Disregards the competition - can result in under pricing or overpricing

4. COMPETITION BASED PRICING

4.1. Good understanding of competitors in the market

4.1.1. Levi Strauss & Co

4.1.2. VF Corp.

4.1.3. The Gap Inc.

4.2. Low-risk strategy - ensures constant flow of revenue

4.3. Unsustainable strategy in the long-term as the market is ever evolving