Price wars take on new dimensions as outlined in this article.
Appropriate Subject Area(s):
Marketing, accounting, business administration
Key Questions to Explore:
How does price competition impact the distribution chain? What impact do households see when price wars rage in the grocery sector?
Severe competitive tension; inflation
Introduction to lesson and task:
This lesson will look at the price competition from two perspectives, that of the distribution chain and that of the household. The research completed will result in a class debate.
Action (lesson plan and task):
- Ask students if they know the price of a quart of milk? Is it the same no matter what store they shop in?
- Discuss price competitiveness with the class. Distribute the article for reading.
- Divide the class in two. Group A should research, using the Internet, the library and other resources, what the impact of price competitiveness has on the entire distribution chain. They can work in small groups of three of four and pick one or two products to research. Group B should look at Canada’s Food Guide, prepare a typical weekly grocery list based on the food guiden and then compare what the list would cost in three different grocery stores. Once the information has been collected, group B should discuss the impact of pricing competitiveness on households.
Consolidation of Learning:
Ask each group to send two representatives to the front of the class to debate: “Price competitiveness is a benefit to all aspects of our society.” Keep five chairs across the front, so if a group member wants to come and contribute to the debate, they can do so by occupying the empty chair and then going back to their seat.
Preparedness for the debate; Contributions to the group work, understanding the impact of price competition
Self assessment, one minute paper