Which outlet category – online or brick-and-mortar – would you expect to have higher prices? Explain.

Entrepreneurial Pricing Strategies

1. Name brands often sell their lines of sweaters, jeans, and shirts in upscale department stores and lowed big-box stores at different prices. When is such a pricing strategy profitable?

2. Airlines typically charge passengers, who book their flights weeks in advance, a lower price than they charge passengers, who book their flights just before they want to travel. Why?

3. Many retailers frequently sell goods on their web sites for different prices than they charge at their brick-and-mortar stores.’ Which outlet category – online or brick-and-mortar – would you expect to have higher prices? Explain.

4. National governments often impose higher tax rates on peoples’ incomes than state/provincial governments and state/provincial governments often impose higher tax rates on peoples’ incomes than local governments. Why?