In order to fully look at this particular question, you’ll need to remember the concepts we looked about regarding social responsibility along with the factors necessary for beneficial partnerships—mutual trust, open communication, common goals, and credible commitments—to respond to this question. I think Inditex, does a good job of addressing the factors for mutually beneficial partnerships, in its Code of Conduct. Because it facilitates mutual trust, maintains open communication about its goals and its ethical business practices, and requires that other members of its supply chain have common goals (including social responsibility) before it will enter into business relationships in the first place. In other words, they fully vet their prospective partners before they commit to doing business with them.
When looking at the pricing, Zara (along with retailers such as H&M) sell what if often called “disposable fashion” Meaning it is lower priced and often disposed of after only a few wearing. They use value pricing. Value-based pricing methods focus on the overall value of the product offering, as perceived by the consumer. Consumers determine value by comparing the benefits they expect the product to deliver with the sacrifice they will need to make to purchase the item.
So think about “disposable fashion”(the value method),many customers would pay less for something that will only be usable a few times instead of paying more (cost of ownership method,) because they recognize the vlaue in purchasing a more expensive (possibly higher quality item because the product costs less over its entire lifetime than a cheaper alternative.
For most people the that it depends upon the product. The chapter 14 application question compares a new suit from Zara vs. the new suit from Brooks Brothers. Although you could get a new suit for $125, the Brooks Brothers suit provides more value because it looks better, feels better, sends the “right...