Small Corner

J Brand denim company embraces customer orientation when designing their pricing strategy. Their high price is designed to enhance the brand’s value and image in the minds of the consumers. Consumers also tend to relate high price to high quality products, without further information nor research. J Brand relies on premium pricing, a competitor-based strategy, to deliberately capture the market share for those who shop for the best or those why are ignorant of prices.

J Brand’s denim is a prestige product, it has achieved and maintained a certain status in the consciousness of fellow consumers. Therefore the demand curve for these products are not downward sloping with respect to pricing, but increases as price increases up to a certain point. As consumers’ disposable income increases, the quantity demanded also increases.

Production costs help the company understand its profit status, but when contemplating price range, the deciding factor should not be solely based on cost, but also on the benefit/value perceived by the consumer. (Consumer purchase based on value/benefit received rather than how much production costs were…they could care less.) The consumers in this case apparently perceive quite a substantial benefit/value offered by the product.

J Brand has decommodized itself from the pure competition by branding itself first of all, and by differentiating their product from the rest of the denim industry. I am convinced that J Brand is engaged in fair trading, which ensures the producers will receive fair prices for their goods.

The internet has definitely made consumers more price sensitive and more knowledgeable about J Brand denim. Consumers can access internet at home and browse websites which provides them with price, description and reviews from other users on specific products, as well as comparisons to other similar products. (Such as Rock Jeans, Nudies etc…) This has helped to make researching more convenient for consumers, which lowered the cost and shortened the process needed to obtain the item.

Finally, so far as I am aware there are no deceptive/illegal price advertising concerning J Brand!