Tweeter Etc.

Objectively and subjectively, is Tweeter price competitive? Why or why not?

Use the data in Exhibit 13 to calculate the mean prices for each of the product categories in each of the stores.

Re-analyze the data by calculating the mean prices for products that are common to the different firms. What do these analyses say about Tweeter’s price competitiveness?

Who are Tweeter’s core customers and who are Tweeter’s competitors for these customers? Are these the right customers to be going after?

How does current buyer behavior fit with Tweeter’s new marketing strategy? How is APP designed to alter that buying behavior? Is APP a customer acquisition or a customer retention strategy?

Has APP proven effective for Tweeter? What factors need to be in place for APP to be effective? Is this effectiveness sustainable?

Session 10: Retail Pricing Strategies (March 15, 2004)

We will use the Tweeter case to illustrate many of the theoretical issues that we have previously raised in the context of a

retailing environment.

Specifically, we will talk about

analysis of price perception and price image, effectiveness and efficiencies of price promotions, retailing in a competitive environment and the relationship between prices, price image and the entire marketing strategy.

Case: Tweeter etc. (Case analysis is due before class begins)

Discussion Questions

• Is Tweeter price competitive?

Think about this question at two levels.

First, think about objective price competition (i.e. use any data in the case that actually lets you compare prices).

Then think about subjective price competition, i.e. what do consumers think?

• Who are Tweeter’s core customers?

Using the segmentation scheme proposed in the case, analyze which of these segments is Tweeter’s core (most important). Then look at this segment carefully to analyze / understand where they shop.

Also, is this the right target segment for Tweeter? In other words, whom should they attract?

• How do consumers