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Select a product or service. Then select three different organizations that provide your selected product or service and compare the prices associated with your selected product or service. What is the difference between the prices among the different organizations? What is the rationale for this difference?
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Hair cut services are a service provided by many different organizations that have a lot of price differentiation. There are usually three tiers of differentiation:
Bargain hair cut: Great Clips- $15
Middle-end hair cut (usually in department stores or local salons): Kiva Salon (http://www.premierspacollection.com/Hair_Design.asp?SpaID=130)- $55
High-end hair cut (trendy salon): Trio Salon (http://www.triosalon.com/services.html)- Starts from $55 for the simplest of bangs and children’s cuts to $150 for the trendiest cut
The rationale for this difference is not necessarily the cut (as any cut can be replicated in any salon and sometimes the stylists may be even better at cutting at lower-end salons). Rather, …
