Body shop has highly priced products but its loyal customers do not expect the company to bring down the price level since the price quality heuristic relates price with quality, status and luxury of using the product. Although the company serves a niche market but it has a class of loyal customers. It is a novelty and is supposed to be expensive. But there are people who want to go for body shop but cannot due to high prices so the company does give discounts from time to time in order to enable more people to be able to afford the products (Peteraf MA,1993).
The body shop has a fair trade program that is called the community trade program and it has 31 suppliers in 24 countries. The body shop has chosen its suppliers itself based on a criteria that supports their program of fair trade. Their suppliers usually do not pose any problems for the company because they themselves believe in fair trade. The fair trade benefits the suppliers as well since they benefit from receipts of actual orders; this program helps the suppliers fulfil their community goals. They gain access to different markets and build their business skills. Since being connected to body shop means the suppliers believe in fair trade they are able to maintain a good name in the market and also gain more business. Thus, the suppliers feel honoured to be part of the prestigious business of body shop and they do not pose any problems in pricing or other aspects (Peteraf MA,1993).
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