Dollar Tree, the last of the big dollar-store chains selling items for $1 or less, on Tuesday said it was officially “breaking the buck” by adding $1.25 and $1.50 price points in some stores.
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- What is pricing?
- Why is pricing an important function of marketing?
- How do you think Dollar Tree can make money only selling items for $1.00?
- What is branding?
- What is differentiation?
- Why is offering products only for $1.00 important to the company’s branding and differentiation strategies?
- Why do you think Dollar Tree is increasing price points to above $1.00 in some stores?
- Why do you think they are only increasing price points in some stores and not all of them?
- How do you think consumers will respond to the price increase?
- What does this mean for Dollar Tree moving forward? Be prepared to discuss your answers in class.