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Topic 789 - The following appeared in a memo from Grocery Town's regional manager. "The new Grocery Town store in Elm City, located near a new residential development, has a 'high-low' pricing policy where average prices are relatively high, but deep discounts are offered on some items in weekly specials. This store has been showing increased profits every month as the nearby residential development gets closer to full capacity. It follows that people prefer a pricing policy where they can find bargains on specific items. Since there is a new residential development planned in Oak City, we should change the pricing policy at all of our Oak City stores from our current 'everyday low prices' policy to a 'high-low' policy. This will increase the profits at all of our stores in Oak City. " Discuss how well reasoned you find this argument.




  • October 15, 2016