The Case of Gallery Furniture

Paper Summary:

This paper explains that the objective of Gallery Furniture is to serve a wide market at the upper-low and middle market segments; the company is well served by this strategy. The author points out that, if the company were to expand geographically, it would have to use zone pricing of delivery. The paper states that, on the company's Web site, showing the photos of the showroom exactly as a low- to-middle level showroom looks, instead of having a more artful Web arrangement of selected items as might be the case in a more upscale Web presentation, supports the firm's strategic position.

Table of Contents
General Pricing Strategy
Pricing the Geographically Expanding Market
Internal and External Concerns
Product-Mix Pricing Strategies
Psychological Pricing
The Web Site

From the Paper:

"Internal factors that would influence the decision would be: whether the store could obtain or get commitments for sufficient quantities of their online items (which in this case is the entire inventory) to serve a region or the nation; whether the logistics of setting up either distribution from a central warehouse or setting up regional warehouses is affordable and acceptable to the operation of the company without diminishing its service to markets it already serves; whether it could set up a service operation sufficient to handle orders nationally or even regionally; whether it had the advertising budget to promote its goods and services regionally or nationally, or whether it would be wise to seek investment to do so."

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