demonstrate the wide variation in pricing of an identical item

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To demonstrate the wide variation in pricing of an identical item, visit three different stores and compare prices on similar items.

Select a category of store. Some suggestions are:

  • Grocery: large chain store, local chain store, convenience store
  • Health and beauty aids: grocery store, drugstore, discount store
  • Over-the-counter drugs: chain drugstore, local drugstore, discount store
  • Clothing: specialty store, department store, discount store

Select two items to compare in the category you chose. For example, in the grocery category, you could compare a type of cereal, a canned soup, and a snack item. Explain the factors you believe lead to the variations in prices. Is it worthwhile for consumers to compare prices when they shop? Some pricing issues you may want to consider include: price competition, non-price competition, odd‑even pricing, promotional pricing, prestige or image pricing, price lining, and unit pricing.

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