People are making purchases every day. Sending money on things they need and things they
want, regardless of that they are sending money. Every time a customer walks into to the store
they aregoing with the intention of buying something and hoping for the best quality. It all
comes down to the benefits the customer will gain after spending the money on a product. The
value that the consumer putson a product or service becomes the customers value for that
contribution. Therefore, customer value equals benefit minus cost. The products that the
company Lululemon's sells are very expensive but it gives the best customer value.
Regardless of the price people are willing to spend the money for highest quality so that they
receive high customer value. "In other words, this brand is active, healthy, and back-to-nature
and isn't shy about saying so. It's that image complimented by a "no discounts" credo that has
afanatically loyal customer base willing to buy everything Lululemon and not even blink at
paying full premium prices." Many just spend money on expensive brands so they get a
higher value and respect in the society. Some actually spend money for its benefits and
customer value.
People's way of thinking is almost like reverse psychology. Customers think that if the price
goes down then the quality of the product will not be there. Which will cause the business
major loss. Companies have to think of a price that people will be willing to pay after taking
into advantage of all the benefits given for the price. Lululemon speaks so well to its target
market, it regularly has enthusiastic fitness bloggers and fans willing to spread the word on
the internet via social media. Lululemon has astrong social media fan base and an online
community of brand ambassadors, which creates brand loyalty.In the article it states "these
Lululemon loyalists have one other thing in common. They paid a premiumprice for their
outfits—and they couldn't be happier." This statement from the company shows the
willingness of the consumers to pay the price for its products for the best outcomes possible.
As they are competing with other stores, Lululemon has the most expensive products yet
people buy their products.
Yes, I think that Lululemon could have achieved the same level of success if it had an
alternative pricing strategy. Lululemon is a yoga and exercise apparel company similar to
Nike, Adidas, UnderArmor, and Puma. This company has been the most successful in
marketing a healthy lifestyle than justits products. The company has started off as a premium
for its products which has led success for thebusiness. People support the healthy lifestyle and
sporting company because it's not just for exercisepurpose but also fashion apparel. This
could be a bad thing for the company or a good idea. Only a tinyone percent of its products is
manufactured closer to home in North America since Lululemon sees this asa way to respond
