11 Jun 2-1 Day
reply to students in 150 words
initial question
- Price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on sale. Assume you are the District Manager of a grocery chain which sells everything like Ralphs or Albertsons. What will you put on sale in your district during the Valentine’s Day week? You must provide your reasons.
Students response
Price ElasticityCOLLAPSE
if I was running a grocery store during Valentines Day, i would allocate a high volume of marketing set aside for items like flowers, chocolate, and wine. People will already be buying these items for Valentines Day so having them on sale would help me attract customers into my store. Once they are in the store I can raise prices on all other items because they are already shopping inside. These price hikes will make up for the discounted prices on expected items to be sold as well as build a sense of loyalty for my customers for helping them celebrate Valentines Day on the cheap.
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