Wal-Mart’s Bait

Wal-Mart’s Pricing Strategy.

WalMart goes to great lengths to have an alluring and unbeatable opening price point item in each category- from TV sets to cosmetics to bathing suits. These are the “unbelievable” prices that the company has become famous for (for example, a microwave oven for $14.67). The psychological impact of this opening price point is huge- consumers are led to believe that all of WalMart’s prices are this low. However, the reality is quite different.

I think i use Wal-Mart pretty well—mostly for their just-as-good generic-brand imitations (ibuprofen, allergy medicine, etc.) and items i know have the best price. Though i have to admit, those $97 TVs always make me slow my pace and look closer on my way to the gummi bear aisle. But usually, i just play it safe and go to Target.

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