Question

Has Cath Kidston executed value based pricing, cost based pricing, or competition based pricing? Explain.

Answer 1

From the case-study, it is apparent that the company clearly uses value based pricing. Personality is an important element in their value based pricing strategy. Customer’s emotions are the target for the high priced products. It is similar to the fashion brand in which the customer’s emotions play a crucial role in the pricing strategy. The products of Cath Kidston are targeted at consumers in such a way that it fulfils their needs for value and a meaningful product. For example, the products are comfortable and has a familiar aesthetic look as in 1950s.