Question

Making Inferences: A local supermarket decides to sell a premium brand of meats and cheeses
in its deli department. This brand is priced about $2 more per pound than the store brand. About
80 percent of the space in the deli display cases is devoted to the premium brand and 20 percent
to the store brand.

a. How did price serve as an incentive to the supermarket?

b. What kind of signals is the supermarket sending to its customers with this pricing strategy?

Answer 1

a.) Price is serving as an incentive to the supermarket due to the fact that the higher prices of the products made the supermarket to enter the premium market.

b.) The kind of signals that the supermarket is sending with this kind of strategy is that their premium brand is of a higher status than the store brand.

With the display being more about the premium brand, consumers are going to be attracted and consider it a better product.

Here is a similar question https://brainly.com/question/9062376?referrer=searchResults