You are an owner of a local coffee shop in East Saint John, and are competing with Starbucks. You charge the same as at Starbucks for regular coffee. Due to supply chain issues in pandemic, supplier you buy coffee beans from has increased the price by % 20. Due to your small profit margin, you need to increase the price of the coffee. Due to nature of your market, you are concerned about the consequences of an open price increase. You doubt that that Starbuck's will increase the price. Articulate three different price-increase strategies that will address your concerns and explain how they might work.
You are an owner of a local coffee shop in East Saint John, and are competing with Starbucks. You charge the same as at Starbucks for regular coffee. Due to supply chain issues in pandemic, supplier you buy coffee beans from has increased the price by % 20. Due to your small profit margin, you need to increase the price of the coffee. Due to nature of your market, you are concerned about the consequences of an open price increase. You doubt that that Starbuck's will increase the price. Articulate three different price-increase strategies that will address your concerns and explain how they might work.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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You are an owner of a local coffee shop in East Saint John, and are competing with Starbucks. You charge the same as at Starbucks for regular coffee. Due to supply chain issues in pandemic, supplier you buy coffee beans from has increased the price by % 20. Due to your small profit margin, you need to increase the price of the coffee. Due to nature of your market, you are concerned about the consequences of an open price increase. You doubt that that Starbuck's will increase the price. Articulate three different price-increase strategies that will address your concerns and explain how they might work.
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