Company Case Notes Payless Shoe Source Assignment

Company Case Notes Payless Shoe Source - Assignment utilisationThe essay Company Case Notes Payless Shoe Source talks about the Payless Shoes on the fashion securities industry. It was in 1995 that Payless Shoes made drastic changes in its marketing mix and pricing strategy. With fierce competition from Wal-Mart, Payless focused on collaborating with well known marketing developers and designers to target the young women. As the company launched mark shoes, it shifted from its previous EDLP (everyday downhearted pricing) strategy to offer shoes at prices as high as $60, thus selling at higher prices than Wal-Mart and other low price stores. Psychological pricing is the strategy of taking advantage of customers emotional responses to produces with different prices. It is a strategy adopted by most retailers who fix their product prices at odd amounts like $1.99. It gives the customers illusion that the price is closer to $1 whereas in reality it is as good as equal to $2. Since P ayless has to sustain their market share within growing competition from giant retailers like Wal-Mart therefore it has increased their price by collaborating with branded shoes Aerosport, Airwalk, American Eagle, Dexter Comfort, and so on (Payless All Brands). In order to refrain from shocking the customers with sudden increase of prices, the common tactics could have been the above mentioned psychological pricing strategy. However, Payless did non pay attention to this and did not implement any such strategies. Payless shoes targets the young women to sell stylish and fashionable shoes at affordable prices.