Why Wal-Mart and Louis Vuitton Don’t Offer Discounts

1. Introduction

When it comes to retail stores, there are two very different approaches to pricing strategy: offering discounts or not offering discounts. In this essay, we will explore the reasons behind why Wal-Mart and Louis Vuitton have chosen not to discount their products, despite the fact that other stores follow a completely different strategy. We will also touch upon the implications that this has for both brands and for society as a whole.

2. What is price discrimination?

Before we can understand why Wal-Mart and Louis Vuitton don’t discount, we need to first understand what price discrimination is. Price discrimination is when a company charges different prices for the same product or service, depending on the customer’s willingness to pay. This means that some customers will be charged a higher price than others, based on factors like their income level or how much they value the product.

There are three main types of price discrimination:
– First degree: This is when a company charges each customer the maximum price they are willing to pay.
– Second degree: This is when a company offers discounts to certain groups of people, based on factors like income level or frequency of purchase.
– Third degree: This is when a company charges different prices for different products, based on factors like quality or demand.

Wal-Mart and Louis Vuitton both practice third degree price discrimination. They offer different prices for different products, based on factors like quality or demand. For example, Wal-Mart sells some items at full price and others at a discount, depending on how popular the item is. Louis Vuitton also has different pricing tiers for its products, with some items being more expensive than others.

3. Wal-Mart’s discount strategy

Wal-Mart is one of the biggest discount retailers in the world. It is known for its low prices and its wide range of products. However, not all of Wal-Mart’s products are discounted. In fact, only about 30% of its products are sold at a discount. The other 70% are sold at full price.

Wal-Mart uses a variety of techniques to determine which products should be discounted and which should be sold at full price. One of these techniques is monitoring customer behavior. Wal-Mart uses data analytics to track which items customers are buying, how often they’re buying them, and how much they’re willing to pay for them. This information helps Wal-Mart to decide which products to discount and which to keep at full price.

Another technique that Wal-Mart uses is called price elasticity of demand. This refers to how sensitive customers are to changes in price. For example, if an item’s price decreases by 10%, but the demand for the item only increases by 5%, then the item has low elasticity of demand. This means that customers are not very sensitive to changes in price and are not likely to switch to another brand if the price increases slightly. On the other hand, if an item’s price decreases by 10%, but the demand for the item increases by 20%, then the item has high elasticity of demand. This means that customers are very sensitive to changes in price and are likely to switch to another brand if the price increases slightly.

Wal-Mart uses elasticity of demand to determine which products to discount. It discounts items that have high elasticity of demand, because it knows that customers are sensitive to changes in price and are likely to switch to another brand if the price increases. Conversely, Wal-Mart doesn’t discount items that have low elasticity of demand, because it knows that customers are not very sensitive to changes in price and are not likely to switch to another brand if the price increases slightly.

4. Louis Vuitton’s discount strategy

Louis Vuitton is a French fashion house that is known for its luxurious products. It sells a wide range of items, including clothing, accessories, and luggage. Unlike Wal-Mart, Louis Vuitton does not offer any discounts on its products. All of its products are sold at full price.

There are several reasons why Louis Vuitton has chosen not to discount its products. One reason is that the company wants to maintain its luxurious image. If Louis Vuitton were to start offering discounts, it would no longer be seen as a luxurious brand. Instead, it would be seen as a cheap brand. This would damage the company’s reputation and make it harder for it to sell its products at full price.

Another reason why Louis Vuitton has chosen not to discount its products is that discounts would make the company’s products more affordable. This would make them more accessible to a wider range of people, which could lead to lower sales in the long run. By keeping its products exclusive and only selling them at full price, Louis Vuitton can maintain high sales even though it has a smaller customer base.

5. Discounts and societal implications

There are a number of implications that discounts have for both brands and for society as a whole. One implication is that discounts can create a sense of entitlement among consumers. When people are used to getting discounts on products, they begin to expect them. This can lead to frustration and even anger when they don’t get a discount, as they feel like they’re being ripped off.

Another implication of discounts is that they can lead to social stratification. This is because different groups of people are able to access discounts at different rates. For example, people who have a higher income are more likely to be able to afford items at full price, so they’re less likely to need or want discounts. On the other hand, people who have a lower income may struggle to afford items at full price, so they’re more likely to want or need discounts. This can create a divide between those who can afford full-price items and those who can’t, which can lead to social stratification.

6. Product, brand and recognition

In addition to the implications that discounts have for brands and society, there are also implications for the product itself. One implication is that discounted products are often seen as being lower in quality than full-price products. This is because people assume that if a product is being sold at a discount, it must be because there is something wrong with it. As such, discounted products often have trouble competing with full-price products in terms of quality and reputation.

Another implication of discounted products is that they can damage the brand image of the product. This is because when people see a product being sold at a discount, they often assume that the brand must be struggling financially or that the product is no longer in demand. This can lead to people losing trust in the brand and no longer wanting to purchase its products.

7. Physiological response to discounts

In addition to the implications that discounts have for brands and society, there are also implications for the individual. One of these implications is that discounts can trigger a physiological response in the brain. This response is known as loss aversion, which is when people feel more pain from losing something than they do pleasure from gaining something.

Loss aversion is thought to be one of the reasons why people oftenINTRODUCTION
When it comes to retail stores, there are two very different approaches to pricing strategy: offering discounts or not offering discounts. In this essay, we will explore the reasons behind why Wal-Mart and Louis Vuitton have chosen not to discount their products, despite the fact that other stores follow a completely different strategy. We will also touch upon the implications that this has for both brands and for society as a whole.

2. What is price discrimination?

Before we can understand why Wal-Mart and Louis Vuitton don’t discount, we need to first understand what price discrimination is. Price discrimination is when a company charges different prices for the same product or service, depending on the customer’s willingness to pay. This means that some customers will be charged a higher price than others, based on factors like their income level or how much they value the product.

There are three main types of price discrimination:
– First degree: This is when a company charges each customer the maximum price they are willing to pay.
– Second degree: This is when a company offers discounts to certain groups of people, based on factors like income level or frequency of purchase.
– Third degree: This is when a company charges different prices for different products, based on factors like quality or demand.

Wal-Mart and Louis Vuitton both practice third degree price discrimination. They offer different prices for different products, based on factors like quality or demand. For example, Wal-Mart sells some items at full price and others at a discount, depending on how popular the item is. Louis Vuitton also has different pricing tiers for its products, with some items being more expensive than others. preferential treatment to those who can afford to pay full price for their products rather than give discounts to those who may need them more. By doing this, Wal-Mart and Louis Vuitton are able to maintain high profits and keep their products exclusive.

8. Conclusion

In conclusion, Wal-Mart and Louis Vuitton do not discount their products because they want to maintain their luxurious image and keep their products exclusive

FAQ

Wal-Mart and Louis Vuitton have been able to maintain their prices by offering a unique product that consumers cannot find at a discount store. The difference between the two brands is that Wal-Mart offers lower prices on mass-produced items while Louis Vuitton focuses on providing a luxurious experience with their products. Consumers continue to purchase from these brands because they believe that the quality of the product is worth the price. There is also a perceived value in paying full price for these products, as it shows that the consumer can afford to purchase them.

Some other brands that have been able to successfully avoid discounts are Apple, BMW, and Mercedes-Benz. These companies offer products that are seen as being of high quality and luxury, so consumers are willing to pay full price for them. If one of these brands did start offering discounts on their merchandise, it could devalue the brand and cause consumers to question its quality. ["Wal-Mart and Louis Vuitton have been able to maintain their prices by consistently offering high quality products at a fair price. They have also built up a loyal customer base who appreciate the value of their products.","The difference between a discount store like Wal-Mart and a luxury brand like Louis Vuitton is that the latter offers higher quality products and services. Luxury brands also typically have a more exclusive image, which allows them to charge premium prices.","Consumers continue to purchase from these brands because they trust the quality of the product and know they are getting good value for their money. There is also a perceived status associated with purchasing from luxury brands, which can be appealing to some consumers.","There is definitely a perceived value in paying full price for these products, as it signifies that you are willing to invest in quality merchandise. Additionally, many people believe that discounts are only available on inferior products, so paying full price reinforces the idea that you are buying a high-quality item.","Some other brands that have been able to successfully avoid discounts include Apple, Nike, and Starbucks. These companies have built up strong reputations for providing excellent products and services at fair prices, so customers are often willing to pay full price without expecting any discounts or sales"]