1. Relative to customer value, explain customers’ willingness to pay premium prices for Lululemon’s products.
Lululemon’s …show more content…
I think that it still would be very successful because of the events it supports and the demand for quality yoga wear, but I think that it would blend in with other athletic stores. Under Armor, Nike, Gap are all fighting at similar prices, but if you see someone wearing Lululemon, you know that it is high-quality. In contrast, the premium prices are separating Lululemon from the bunch. “While all the top athletic apparel brands have now jumped on board with their own lines of yoga wear, Lululemon is priced at the top of the heap” (330). They are successful with premium pricing strategy, and I don’t think that they would be successful with a price- skimming strategy. Since the market is so status orientated, I don’t think they would be as interested in the product if later consumers can buy the product easily after a certain time. I don’t think that it would have thrived with a market penetration strategy because there are many companies offering low prices and fewer offering an expensive