SCENARIOS
Diaz
John Diaz immigrated to Tallahassee from Cuba in the 1980s.He set up a coffee shop called Diaz in a small upper middle class neighborhood.It rapidly became popular because of the wonderful coffee it brewed.Soon Diaz was selling the finest coffees from around the world,plus coffee-making necessities such as grinders and brewers.Within ten years,Diaz was operating a lucrative mail-order business in addition to his coffee shop.
Upon entering the shop,the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee.Marble-topped tables are set in cozy nooks with overstuffed chairs.Bookshelves on one wall hold books about coffee for patrons to read while they sip.The smell is intoxicating to a real coffee lover.Coffee drinkers can take home a pound when they leave.The store carries all types of coffee from $300 per pound Kopi Luwak from Sumatra to Brazilian Cerrado for $8 a pound.
-Refer to Diaz.What pricing strategy would you expect to find the being used at Diaz?

Question

Quizplus · Accepted Answer

Diaz is offering high-quality, premium coffees from around the world at a range of prices, including a $300 per pound option, indicating a prestige pricing strategy. The store also sells coffee-making necessities such as grinders and brewers, which may be priced differently, but the focus of the scenario is on the coffee itself.

SCENARIOS Diaz