Case | HBS Case Collection | September 2010 (Revised August 2013)

Liza Davis and the Bargain Hunting Customer

by Francisco de Asis Martinez-Jerez and Lisa Brem

Abstract

Liza Davis, an upscale women's fashion retailer, is reeling from worldwide recession and lower demand. Should the company target the fast-growing bargain hunter segment or hold the line on price discounts to preserve their brand image? Customer profitability calculations show that the bargain hunting customer loses money—does that mean they should ignore this customer in favor of full price shoppers?

Keywords: Competitive Strategy; Price; Product Positioning; Customer Value and Value Chain; Business Cycles; Financial Crisis; Profit; Knowledge Use and Leverage; Fashion Industry; Retail Industry;

Citation:

Martinez-Jerez, Francisco de Asis, and Lisa Brem. "Liza Davis and the Bargain Hunting Customer." Harvard Business School Case 111-040, September 2010. (Revised August 2013.)