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Why is the price of a J

Marketing Dec 22, 2020

Why is the price of a J.Crew jacket so much lower at an outlet mall? Explain.

Expert Solution

J.crew offers different types of jackets and coats at its retail stores and outlets. In the last few years, the company had faced claims by some of the customers for offering similar jackets at different prices. For instance, the price of a jacket at the J.crew factory is slightly higher than the price of the same jacket at an outside outlet. According to some research, the products sold at the company on both online sites and retails have standard prices and high quality compared to the products offered at the Outlets. The researchers conclude that The fabric used to develop these clothes offered at the main retail is different from the one found at the outlets. However, the product looks identical, and a person with an Untrained eye cannot differentiate the two products. The company argues that the outlet creates a line of lower quality products at lower costs while the J.crew factory makes the same product for different prices hence the difference in prices.

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