Chic by choice

: on pricing strategies and consumer perceptions

Abstract

Millennials have been shaping markets and influencing the way companies are offering and communicating its products and services because, in contrast with the so called generation baby boomers, they are focused more on the experience, rather than on ownership of things. Chic by Choice is a Portuguese start-up, founded in May 2014, that decided to enter in a new online market category that has been witnessing significant growth and showing great potential when considering the reasoning millennials live up to: why buy if you can rent, use, have fun and then, return it? The Online Fashion Rental industry has one big player in America, who started operations in 2009, and in Europe, some smaller competitors in major markets such as the United Kingdom and Germany, where online shopping is something relatively embedded in their consumption behaviours. Being able to acquire one of the latter competitors, Chic by Choice was in a phase of rapid growth but, at the same time, it needed to keep its results positive and enticing to secure external investment. Therefore, in order to achieve these goals, the company had to make decisions regarding pricing, more specifically, the price and discounts given to the first customers so as to acquire them more easily, making them a more desirable and attractive value proposition and, by consequence, keeping revenue and average order values as high as possible.

Date of Award	19 Jul 2016
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Paulo Gonçalves Marcos (Supervisor)