Discusses a well-known traditional department store that confronts a very difficult issue of whether to change its pricing policy from a high-low to an everyday pricing approach. Demands that the student formulate a plan of execution for changing the pricing, if needed.
Addresses the controversy that surrounds highly promotional retail pricing referred to as "high-low pricing" by the trade. High-low pricing involves setting prices at an initially high level for a brief period of time, then discounting off the so-called "regular" or "original" prices for the bulk of the selling season. Discusses recent accusations by state and local authorities that such pricing policies are deceptive and covers, in detail, a recent court case involving May D&F, a subsidiary of the May Companies in Colorado. Introduces the complexity of the retail promotional environment, and the problems associated with highly promotional pricing. Understanding consumer response to promotions is critical to the case analysis.
An abridged version of Workbench, most notably the results of two customer surveys, given in their complete form in Workbench. Focuses on the pricing decision for a small contemporary furniture retailer. Should Workbench continue its highly promotional pricing policy or adopt Everyday Fair Pricing?