Olivia worked in a shoe store part-time while going to school and studying general business for the past few years. Unfortunately, she was laid off from her job during the pandemic, but she has recently gone back to work and now that she has finished school, she is picking up extra shifts to save money.

While Olivia enjoys working in a clothing store, her real passion is shoes. So, she is planning to open her own shoe store where she lives, in Kitchener, Ontario, about an hour west of Toronto. Olivia's dream is to sell all kinds of shoes, particularly those of high quality and made of natural or recycled materials. While Olivia did learn some general business concepts while at school, she realizes she needs help with the details of her store and what and how she should offer her customers and prospects for her business to be successful.

So, Olivia has just hired you as her marketing consultant and she wants your help in answering the following questions:

Pricing

In trying to think about what prices Olivia should set for the many products in her shoe store she needs to better understand the options and strategies she should consider.

1. Identify and explain the three major pricing strategies Olivia should consider.

2. What research should Olivia conduct to determine what prices she should set for her products? How will she find this information?

3. We watched a Dollar Shave Club Video. What type of pricing is being used in this ad and why?