People are making purchases every day.

Sending money on things they need and things

theywant, 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 thebenefits 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 valueequals benefit minus cost. The products that the
company Lululemon's sells are very expensive but itgives the best customer value. Regardless
of the price people are willing to spend the money for highestquality 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
fullpremium prices." Many just spend money on expensive brands so they get a higher value
and respect inthe 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
goesdown 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 thebenefits given for the price. Lululemon speaks so well to its target
market, it regularly has enthusiasticfitness 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
thewillingness of the consumers to pay the price for its products for the best outcomes
possible. As they arecompeting 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
alternativepricing 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
quickly to changing market trends. Outsourcing its manufacturing to places withcheaper labor
and raw materials helps them reduce cost. If the company starts to increase the
pricetremendously than there are chances of Lululemon losing its loyal customers and
business going intoloses. If it wants to keep the customers they will have to adjust to the
economy and lifestyle and target acertain generation who is willing to spend that type of
money.

I think that Lululemon cannot continue to succeed by employing the same premium-
pricingstrategy. The company is already using this strategy and its outcome has been a great
success, but furtherit could harm the company as it will increase the prices and less people
will be able to afford the products.There will always be competition for Lululemon so if it is
going to continue increasing its prices thantheir loyal customers will adjust to other brands
where it is cheaper and good quality. The statement "Youcan go to Sports Authority to get
stuff made by Nike for women, but you just don't feel indulgent there."Will only last if they
don't increase their prices and continue to benefit from their strategies

Bai 2:
11-18 Relative to customer value, explain customers’ willingness to pay premium prices for
Lululemon’s products.

Thanks to the company’s logo, who is recognizable and well known, Lululemon’s customers
are willing to pay premium prices for their products. Customers demand are generated by
their active, back-to-nature and healthy brand appearance. They give a good image and the
lifestyle it corresponds to.

11-19 Based on principles from the chapter, explain how price affects customer perceptions of
the Lululemon brand.

As quality is usually correlated to price, customer may think that products have higher quality
because of their higher price, but in realty many other brand sales same quality product with
lower price or also same price for a better quality.

11-20 Could Lululemon have achieved the same level of success had it executed an
alternative pricing strategy?

In case they executed an alternative pricing strategy, the company will be more affordable for
more people. The thing is that the premium price is what differentiated them from others so if
they change this factor it could have a negative result because the company will be not
exclusive
11-21 Can Lululemon continue to succeed by employing the same premium-pricing strategy?
Explain.

If Lululemon develop new strategies to attract new customers by making period of sales for
example, it will bring them more succeed because that would enable more customer to
discover the brands product at more affordable price. But in case, the company can continue
to succeed with this same premium-pricing strategy because they have a famous name and are
already established in the market

a lifestyle. The company exudes thephilosophy capture by its manifesto: "We are passionate
about sweating every dayand we want the world to know it. Breathing deeply, drinking water
and gettingoutside also top the list of things we can't live without." In other words, this
brandis active, healthy, and back-to-nature and isn't shy about saying so. It's that
imagecomplimented by a "no discounts" credo that has a fanatically loyal customer
basewilling to buy everything Lululemon and not even blink at paying full premiumprices.

11-19 Based on principles from the chapter, explain how price affectscustomer perceptions of
the Lululemon brand.

The big question is whether Lululemon products are worth the premium price?Expensive but
worthFabric blends are a bit different, as are the styles, fit and features. But, as is thecase with
most items of clothing, the perception of quality comes down to personalpreferences.
According to Forbes polls, yoga fans find Lululemon products better,they feel better than any
competing products.

11-20 Can Lululemon continue to succeed by employing the same premium-pricing strategy?
Explain.Over the past four years,Lululemon's revenues have doubled from $1 billion to $2
billion as it maintains ahealthy 13 percent profit margin. And while the company's stock price
took a divea couple of years ago amid various controversies, it has averted the lasting
effectsof such as the value of its stock has recovered to nearly $10 billion.Thus, adheringto
the same strategy of marketing and pricing, the company will be able to keepsales and
profitability at a high level.

Bai khac:
Q.Relative to customer value, explain customers willingness to pay premium prices
forLululemon's product?
ANSWER Lululemon is a premium yoga brand. They have targeted yoga teachers as
brandambassadors. People practicing yoga talk about it wherein others at yoga class too try
the brand.Yoga teachers talk about the brand and the quality which it brings. People are
spending on yoga andhence they purchase Lululemon as it is most spoke about brand in yoga
class, Once the person triesit, the comfort which it offers build brand loyalty and the new
customer also talks about it.Lululemon also builds campaigns around yoga and people
connect with it which again increases itsvalue. The value which Lululemon brings is the
reason why customer's are willing to pay premiumprices.

Q. Based on principle from the chapter, explain how price affects customers perception
oflululemon brand?

ANSWER: Price affects customer's perceptions of Lululemon brand as premium brand

asLululemon has priced its product slightly higher than other available options. Other brands
offerdiscounts but Lululemon hardly offers any discount. Customer has perception that
Lululemon hashigh quality product.

Q. Could lululemon have achieved the same level of success had it executed an alternative
pricing strategy?

ANSWER:Lululemon is already very successful and with alternative pricing strategy

tooLululemon would have succeeded because the Lululemon products already have those
ingredients ofalternative pricing like customer satisfaction, value for price, long term
relationship with brand.

Q. Can lululemon continue to succeed by employing the same premium pricing strategy?

ANSWER: Lululemon did get criticism on price hike, but they have been able to deal with
these inthe past as well. The product is still in affordable range and is considered premium.
Some customersmight get lost but they have huge loyalty base. Until Lululemon start losing
loyalty base, Lululemonwill succeed by employing premium pricing strategy.