Why Does Starbucks Coffee (and Canada Goose Jackets) Cost More?

Sellers must decide where to price their products: do they want to be a low-cost supplier, price according to their costs, target their prices for a certain market segment, or deploy a premium price strategy when deciding on their pricing strategy?  Successful brands are using each strategy. Companies such as Starbucks and Canada Goose have chosen to differentiate their products from others in the marketplace by pricing their products as premium brands in their marketplace. They are considered “luxury goods,” products that increase in demand as the buyer’s income increases.   Starbucks deliberately prices its coffee at the high end of the...