Toro decided to augment its traditional hardware outlet distribution by also selling through big discounters such as Walmart and Zellers and set prices for the discounters substantially below those for its traditional hardware outlets. Many unhappy hardware stores subsequently abandoned Toro products in favour of other manufacturers. This is an example of a firm failing to consider effects when setting its final list or quoted price.

Question

Quizplus · Accepted Answer

This scenario illustrates a failure to consider the customer effect, as the decision to sell through discounters at lower prices led to dissatisfaction and loss of traditional hardware store customers.

Toro Decided to Augment Its Traditional Hardware Outlet Distribution by Also