Question

Jackie has been selling gold rings for $50 each. Her cost for the rings was $25.
She learns that another store on the other side of the mall sells gold rings for $40.
What information should Jackie consider before deciding if she should change her
price?

Answer 1

- The demand for gold rings in her store compared to the other store
- The quality of the gold rings being sold at the other store
- The reputation of the other store in terms of customer satisfaction and loyalty
- The operating expenses of both stores and how they impact pricing decisions
- The overall competition in the market for gold rings
- Whether lowering her price will attract more customers and ultimately result in higher profits
- Any contractual agreements or commitments Jackie may have made regarding pricing