Company Case Notes Payless Shoe Source Assignment

Company Case Notes Payless Shoe Source - Assignment Example The essay "Company Case Notes Payless Shoe Source" talks about the Payless Shoes on the fashion market. It was in 1995 that Payless Shoes made drastic changes in its marketing mix and pricing strategy. With fierce competition from Wal-Mart, Payless focused on collaborating with well known marketing developers and designers to target the young women. As the company launched branded shoes, it shifted from its previous EDLP (everyday low pricing) strategy to offer shoes at prices as high as $60, thus selling at higher prices than Wal-Mart and other low price stores. Psychological pricing is the strategy of taking advantage of customers’ emotional responses to products with different prices. It is a strategy adopted by most retailers who fix their product prices at odd amounts like $1.99. It gives the customers illusion that the price is closer to $1 whereas in reality it is as good as equal to $2. Since Payless has to sustain their market share within growing competition from gia nt retailers like Wal-Mart therefore it has increased their price by collaborating with branded shoes Aerosport, Airwalk, American Eagle, Dexter Comfort, and so on (â€Å"Payless: All Brands†). In order to refrain from shocking the customers with sudden increase of prices, the common tactics could have been the above mentioned psychological pricing strategy. However, Payless did not pay attention to this and did not implement any such strategies. Payless shoes targets the young women to sell stylish and fashionable shoes at affordable prices.