1. Relative to customer value, explain customers' willingness to pay premium prices for Lululemon's products.
2. Could Lululemon have achieved the same level of success had it executed an alternative pricing strategy?
3. Can Lululemon continue to succeed with the current premium-pricing strategy? Explain.
Lululemon has quickly risen to the top of a bustling market that it played a major role in defining. With approximately 400 stores around the world, Lululemon peddles its own brand of yoga-inspired apparel with its instantly recognizable logo-an iridescent lower-case "a" that resembles an "omega." But far more than selling clothing, Lululemoninspires an image and a lifestyle. The company exudes the philosophy captured by its manifesto-"We are passionate about sweating every day and we want the world to know it. Breathing deeply, drinking water, and getting outside also top the list of things we can't live without." In other words, this brand is about active, healthy, back-to-nature lifestyles and isn't shy about saying so. That image, complimented by a "no discounts" credo, has a fanatically loyal customer-base willing to buy everything Lululemon without any concern about the premium prices.