Inflation has touched nearly everything these last few years — even Trader Joe’s 19-cent bananas. But Costco is holding the line on its hot dog-soda combo price.
Click here to read the story at cnn.com.
Discussion Questions:
- What is price?
- What is inflation?
- How does inflation impact you as a consumer?
- According to information from this story, how much would a Costco hot dog cost today if the company kept pace with inflation rates?
- Why do you think they have kept the cost of a hot dog combo at $1.50?
- What is a loss leader?
- How might Costco’s hot dogs represent an example of a loss leader?
- What is brand loyalty?
- Why is loyalty important to Costco?
- How might keeping hot dog prices at $1.50 help Costco to build and maintain customer loyalty?
- Costco has recently started to enforce its policy of requiring customers to show their membership card to enter its food court area. How might that help them to build and maintain customer loyalty?