00:01
In examining price as a signal, this example is telling us that a discount store, who typically targets lower priced items, has begun to sell some higher priced jewelry and electronics.
00:13
And they do this because their customer base is made up of people with varying income levels, not just lower income customers.
00:20
So we'd like to know that this discount store beginning to sell these higher, these more premium products, what signal does this send to other premium product? producers.
00:32
And essentially what this is doing is it's explaining, it's signaling, it's telling these other producers that they too could be selling their products within discount stores.
00:41
So it gives it, it essentially sends this signal of competition and that these other premium product producers, if they want to earn similar profits as the brand that's being sold in this discount store, that they too will have to find some other discount store to sell their products in, otherwise they're going to risk seeing a slight decline in their revenues...