An article in The Atlantic was about the price discrimination strategy of both Wal-Mart and Louis Vuitton. Since they sell luxurious products, it is easier for them to retail without discounts. This is because many of the customers in the market segment are price insensitive and they focus mostly on the products they are purchasing. This becomes a classic discrimination strategy and also a competitive strategy in the lifestyle-based segment. This segmentation in terms of the physiological attributes of the society enables them to maintain their sales and their brands (The Atlantic Monthly Group, Para 1).
This type of discrimination is characterized by persons who can pay and also value quality when making purchasing decisions. This sector is faced with many opportunities and threats. When a company exploits its opportunities efficiently and effectively, it could earn mileage in the fashion industry. In this case, the consumer’s needs should be put first and since there is an increase in the economic standards of many states, this market has a lot of potential for growth (The Atlantic Monthly Group, Para 3).
For these two companies to ensure a sustainable future, they should not discriminate with response to price. This is to ensure that the consumer gets that extra utility for owning something most cannot own. This gives them more utility or satisfaction thus increasing brand loyalty in the long run. Brand recognition is the issue even before the buyers visit the shopping outlets. This is because it is a factor that most buyers put into consideration when purchasing. In this case, the brand i.e. Wal-Mart and Louis Vuitton will be established (The Atlantic Monthly Group, Para 4).
Works cited
The Atlantic Monthly Group Inc. ‘Why don’t Wal-Mart and Louis Vuitton discount?’ The Atlantic Wire, 2008. Web.