Use the Harvard Business Case, “clique Pens: the Writing Implements Division of U.S. Homes” as the Basis for Answering the Following Questions:

Use the Harvard Business Case, “Clique Pens: The Writing Implements Division of U.S. Homes” as the basis for answering the following questions:

• Can Clique Pens implement a price increase? If not, can Clique Pens deploy funds that allow us to gain market share by providing discounts directly to the consumer, but still allow the retailer to make acceptable profit?

I believe that Clique pens could successfully implement a price increase, according to Chen’s data (Frank & Kindley, 2013). Price is not a major factor for consumers, especially when the increase is on an item that consumers do not buy regularly enough to know what they should be paying. They could also not implement a price increase and find other ways to earn a higher profit, such as selling directly to consumers instead of dealing with retailers. They could sell directly to large companies that will require larger orders of product than the average consumer.

• Does advertising do nothing to help in this war?

Advertising can play a role in this, but it would depend on the type of advertising. For example, a coupon ad in the local paper would not help increase sales significantly enough. I feel that when shopping for school or office supplies consumers go to their preferred retailer first, and then will purchase items based on their product offerings or accessibility throughout the store. This is where brand recognition will come into play. Effective packaging, shelf space, and product offerings will draw in the consumer and create more sales.

• One could argue that their customers should perceive a higher value benefit from lower price, but will they really?

Replacing cheap pens that break multiple times throughout the year for a low price creates less value than buying one or two packs of quality average priced pens that may last a long time. I would rather pay more so I do not have to keep going back to the store to buy more pens. Overall it has to do with how satisfied was the consumer with their purchase. The value benefit of a product necessarily does not come from a lower price but instead can be determined by the consumer’s satisfaction with their purchase. Either way whether I spent more or less on an item, if it does not perform properly or meet my initial need, then there is no value in it for me.