Green Pricing; the narrow escape for the retailers - A lesson from Wilko
Barely two decades ago, it was Woolworths in Administration sale mode, and now no
other retailer than the cut-price chain Wilko, who occupied many of the former
stores of Woolworths when they seized operations.
It
comes to many as a big surprise especially consumers who have for long enjoyed
great deals from the retailer which has now become their only source of home
products. However, industry analysts and observers only see this as the final
stage of the events spanning the past couple of years. Last year alone, it shut 15 stores and squeezed
its head office structures to cut costs. Between 2021 and last year it lost
about 1,600 staff, reducing its headcount to 12,400 from the about 14,000 staff
in their role.
Retail
pundits have attributed this bust to different reasons including the management
and ownership structure of the firm, large stores in expensive locations of new
stores, but I will stick my nose out and attribute it solely to the lack of a
flexible pricing strategy especially after COVID.
It
is no secret that the target customer base of the Wilko brand is high street
footfalls, who obviously are extremely price sensitive. In the heat of the
moments from the start of the pandemic, Wilko was considered a necessity store
by the government and hence allowed to operate within lockdown though Covid
restricted movements, hence the 40% decline in Wilko footfalls for the 2020
year.
It
was at this material stage when the management should have considered looking
at the pricing strategy and maximizing other possible streams of income available
to the retail brand.
Continuity
is extremely important and should not be sacrificed for temporal profitability
or customer base especially when selling goods with low profit margins. With low
footfalls, low sales, low profits, constant operational and consumption costs,
and obviously low supplies, the obvious strategy was to twerk the prices to
cover the increasing cost. This obviously would not have been a welcomed news
for the customer base but then, desperate times call for desperate measures for
survival.
This
is what calls for the concept of Green pricing, a pricing scheme that compels businesses
to look more into the wider future and not solely on instant gratification.
The
concept of "Green Pricing" aligns with the idea of incorporating
sustainability and long-term industry dynamics into pricing strategies. This
approach reflects a more holistic view of the costs and impacts associated with
products, including environmental and social considerations. Let's break down
the concept with some illustrations:
Traditional
Pricing vs. Green Pricing
In
traditional pricing, businesses primarily focus on covering production costs,
overheads, and desired profit margins when setting product prices.
Environmental and social impacts are often externalized, leading to potential
negative consequences for the environment and society.
Green
Pricing goes beyond immediate financial considerations and takes into account
the long-term effects on the environment and society. It involves assessing the
true costs of production, including factors like resource depletion, carbon
emissions, social welfare, inflation, exchange rates, political climate,
seasonal effects, and other such factors as may be necessary to ensure to
safety of the business, the society’s livelihood and general welfare.
Components
of Green Pricing
Environmental
Impact
Consider
a clothing retailer that traditionally prices its products based on
manufacturing costs and desired profits. With Green Pricing, the retailer would
also account for the environmental impact of materials, manufacturing
processes, and transportation. For example, organic cotton might have a lower
environmental footprint than conventionally grown cotton.
Lifecycle
Analysis
A
technology company could apply Green Pricing to its electronics products.
Instead of solely focusing on manufacturing costs, the company considers the
entire lifecycle, including raw material extraction, production,
transportation, use, and end-of-life disposal. This could lead to product
designs that are easier to recycle or repair.
Future
Trends and Regulation
A
food manufacturer might factor in potential future regulations and market
trends related to sustainability and health. Green Pricing could result in
products with lower sugar content or eco-friendlier packaging to meet
anticipated consumer preferences and regulatory changes.
The
retail Perspective
Retailers
generally control less of the production processes of the items they sell. In
their bid to implement green pricing strategies, they should focus more on
factors that will ensure their survival after meeting all the regulatory,
financial, and social requirements of the business. Such a strategy might not
give immediate benefit but will provide the needed assurance that the business
has a life in the foreseeable future, hence an assurance of the going concerns
of the brand.
Communicating
Value
Green
Pricing involves transparently communicating the rationale behind price
adjustments. Companies could provide information on how the pricing aligns with
sustainable practices and benefits.
Retailers
can educate consumers about the positive impacts of Green Pricing. By
highlighting the efforts being made to reduce the product's environmental
footprint, they can engage environmentally conscious consumers. More social work
and sponsorships can be done to keep the brand in the minds of consumers.
The
long-term benefits of Green Pricing are market leadership and resilience to factors
that may push the business into closure.
Companies
that adopt Green Pricing demonstrate their commitment to sustainability,
potentially attracting environmentally conscious consumers and setting
themselves apart as industry leaders.
Considering
future industry dynamics helps companies anticipate and adapt to changing
market conditions. By factoring in sustainability, companies can be better
prepared for shifts in consumer preferences and regulatory landscapes.
In
essence, Green Pricing involves a shift from short-term profit-focused pricing
strategies to more holistic approaches that consider the broader implications
of a product's lifecycle. This approach not only benefits the environment and
society but also positions businesses for long-term success in a changing
world. It's important to note that implementing Green Pricing requires careful
analysis, collaboration across departments, and a commitment to sustainable
business practices.
This is my first book.
A small book with very important content that each and every person who has the ability to read needs a copy. It's not expensive; it cost approximately $1.00; and Gh¢3.00 in Ghana.
Many of us grew up knowing and memorizing the nine planets but now the question of how many planets there are has become a difficult question for an answer; saying nine just means you are from the 10th generation. Numerous discoveries has been made including in 2005, when Mike Brown discovered Eris, an icy object thought to be about the same
size as Pluto, out beyond its orbit.
That
would bring the total number of planets to ten.
There’s
no turning back, textbooks would need to be changed. A lot of interesting argument are going on (references to the argument sites are in the book). You need to follow the arguments.
The book is also a summary and an easy reader version of the world atlas; it contains a list of all countries in the world, the capital cities of each country, largest city in each country.These are in tabular formats.
The number of Continents of the earth has also been a point of attention; not more five as it used to be. Re-dimensioning and rediscoveries as the days passes. The book provide a good information on this. Each country and the continent it falls under. I also did well providing some quick facts about each continent.
Language is another important thing we must know. The book list the official and dominating languages in each country of the world; a list of country currencies; country area codes (Location codes) and more information that we need to have as we read wider or travel to new places.
Get in touch for your copy for personal use or for your siblings and relations. Via email on iabdulrahim9@gmail.com or via phone on 020 9318015 (If outside Ghana prefix 0233). Good discount for buying more that twenty (20) copies.
Originally, stress was a term used by engineers and architects. The word referred to a force which put such pressure on an object, that the object was altered in some way. Later, stress came to be used in a broader sense. Physical stress, emotional stress, social stress psychological stress and similar phrase were used to describe forces that put pressure on living organism.
Stress is part of the fabric of human existence. It is an inevitable accompaniment of the challenges we undertake in developing new skills abilities and competences. In most cases, we grow by mastering the challenge. In some cases, however, the challenge exceeds our ability to cope. Crider B .A et al (1993).
Assuming threat you are heading towards home in your car in hurry, you meet a traffic jam. Then another motorist smashes your car at the rear. You think about the semester exam you have to work on tonight. You also recall the numerous attempts you made to solve some problems in the paper the previous night and that you need to complete the paper to be able to have time to study for your psychology of adolescence test not to mention the statistics quiz. Then suddenly, you remember that you have promise he person you are dating that the two of you would get out together tonight. Another thought also came in to your mind; the increased in tuition fees announced yesterday; your inability to settle the previous semesters fee; your parents are disturbing you to change your school but you do not want to leave your friends. Then your heartbeats quickens as you contemplate the debate you are sure to have with your parents. You begin to feel wired up in tension as you realize that the stress in your life never seem to let up.
Many circumstances can create stress. It comes in all sort of packages; big and small pretty and ugly, simply and complex. All too often, the package comes as a surprise. Weiten (2000).
In our presentation, we shall try to sort out these packages. We shall attempt to;
-Define the concept, stress
-Discuss the nature of stress including the various types
-Explain the causes of a stress
-State some effect of stress
-Come out with suggested therapies or management of stress.
DEFINITION OF STRESS
The term stress has been defined in different ways by different theories. Some of the definitions are;
‘’ stress is the disruption of our normal psychological and psychological functioning that occurs when a challenge threat our ability to cope adequately’’. Cridal et (1993).
‘’Any environmental demand that creates a state of tension or threat and require change or adaptation’’. Morris &Maisto (1999).
‘’Stress refers to an influence or stimulus which exerts forces on a person’’ Collins (19971).
Stress is the general term that describes the psychological and bodily responses to a stimulus that alter a person’s state of equilibrium’’. Kosslyn S. M et al (2001).
Any circumstance that threatens or is perceive to threaten one’s well-being and that there by tax one’s coping abilities’’ Weiten (2000).
Dr. Susan Michie gave the general accepted definition today as ‘’one of interaction between situation and the individual. A psychological and physical state that results when resources of the individual are not sufficient to cope with the demands and pressures of the situation’’ Website.
Common among the definitions stated above is the fact that stress involves a situation or a stimulus that is threat to the coping of an individual.
A threat may be to immediate physical safety, long-time security, self esteem, reputation, peace of mind or other things that one values. Long term stress is an important factor in the development of physical illness, including such leading causes of death as heart diseases and high pressure
Stress is a common every day event, and even seemingly minor stressors problematic. The experience of feeling stressed depends on what events one notices and how one appraises them. Events that are stressful for one person may be routine to another. Thus, stress is more likely in some situations and in some individuals that other. Stress can undermined the achievements of goals for individuals and for organizations.
MAJOR TYPES OR SOURCES OF STRESS
1.FRUSTRATION
Frustration is an emotion experienced when the pursuit of some goal is blocked or thwarted because something or someone stands in the way. Frustration results from delays in achieving what one wants are brief and insignificant because when the wants are met at some other time, the frustration is forgotten. Other frustrations such as failing to be promoted or losing a boyfriend or girlfriend can be a source of significant stress. Frustration could be external or internal. External frustrations are obstacles in the environment. Example, a rain at a picnic, a flat tyre when one is in a hurry. Internal frustration refers to personal limitations within the individual. Example, the student of a below average ability who wants to be a physician or small body building in a boy who wants to play football are all examples of frustrations resulting ffrom internal limitations.
2.CONFLICT
Conflicts arises when two or more incompatible motivations or behavioral impulse compete for experience-that is when one is to choose between two or more mutually exclusive, but equally desirable goals.
Conflicts come in three types. These three types of conflict were originally described by Kurt Lewin in 1935 and invested by Neal Miller In 1959.Weiten W (2000). The three basic types of conflicts are:
-Approach-approach conflict
-Avoidance-avoidance conflict
-Approach-avoidance conflict
APPROACH –APPROACH CONFLICT
The result of simultaneous attraction of two appealing possibilities, neither of which has any negative qualities. In other words, when a choice has to be made between two desirable goals or behaviors, one goal can be achieved only by given up the other. An example is a small boy who has been asked to chose between a bottle of fanta and a chocolate ice cream when he actually is interested in both, or a student who wants to undertake anthropology and sociology but discovers that they both meet at the same time, or a woman who likes two hats but can only afford to buy one in such a situation. The choice of the two attractive alternatives develop a conflict.
AVOIDANCE-AVOIDANCE CONFLICT
The result of facing a choice between two undesirable possibilities, neither of which has any positive qualities. Example, a person who has a backache has to choose between submitting to surgery that he dreads or to continue to leave with the pain. The result of the choice between the two alternatives develops conflict. Obviously, the avoidance-avoidance conflict is most unpleasant and highly stressful.
APPROACH-AVOIDANCE CONFLICT
The result of been simultaneously attracted to and repelled by the same goal. For instance, one has been offered a promotion that will mean a large pay increase but he has to move to a city that he hates. In other words, when a goal has both desirable and undesirable features at the same time.
3.CHANGE
Life changes are any noticeable alterations in ones living circumstances that require re-adjustment. Most people have strong preference for order continuity and predictability in their life’s. Therefore, experience any event good or bad, that bring about change as trustful. By the same token, the amount of change various situations require denotes how stressful they are.
Holmes and Rahe (1967) developed the Social Re-adjustment Rating Scale (SRRS) to measure life changes as a form of stress. The Scale assigns in medical values to 43 major life events. These figures reflect the magnitude of the Re-adjustment required by each change.
Using the SRRS, one simple adds up the stress rating of all the events that a person has to live through in a given period to determine the amount of stress that he or she has experienced. In general, a score of 150 or less is considered normal. 10 to 190 corresponds to mild stress; 200 to 299 suggest a moderate crises; 300 and above indicate major life crises. The likelihood that a person will experience a ‘’stress-induced illness’’ increases sharply for scores above 300.
RANK
LIFE EVENT
LIFE CHANGE UNIT VALUE
1.
Death of a spouse
100
2.
Divorce
73
3.
Marital Separation
63
4.
63
5.
63
6.
53
7.
50
8.
47
9.
45
10.
15
11.
44
12.
40
13.
39
14.
39
15.
39
16.
38
17.
37
18.
36
19.
35
20.
31
21.
30
22.
29
23.
29
24.
29
25.
28
26.
26
27.
26
28.
25
29.
24
30.
23
31.
20
32.
20
33.
20
34.
19
35.
19
36.
18
37.
17
38.
16
39.
15
40.
15
41.
13
42.
12
43.
11
Many critics have argued that SRRS thus not measure change exclusively. The main problem is that the least of life changes on the SRRS dominated by events that are clearly noted or undesirable. These negative events probably generate frustration. Although, there are some positive event on the scale, it could be that frustration (generated by negative events), rather than change , raise most of the stress accessed by the scale. Weiten W (2000), Morris/ Maisto.
4.PRESSURE
Pressure occurs when one feels forced to speed up , intensify, or shift direction in his behavior, or when he feels compelled to meet a higher level of performance. Pressure may come from within (as when one pushes himself to reach personal standards of excellence). This internal pressure may be either constructive or destructive. Outside demands also cause pressure; as when we compete for grades for;
-Popularity
-Sexual and marital partner
-Job
In addition, we are pressured to live up to expectations of family and close friends. Morris/ Maisto (1999)
CAUSES OF STRESS
Situations that are likely to cause stress are those that are unpredictable, uncontrollable, uncertain, ambiguous or unfamiliar, or involving conflict, loss of performance, expectations, such situation like time limited events as the pressure of examination or work deadlines may cause stress. Ongoing situations like family demands, job insecurity or long commuting journey.
Frustration occurs when a person is prevented from reaching a goal. Example denial of rights, lack of resources etc. choice among alternatives generate stress(conflict) situations that brings about changes in person’s life are likely to cause stress situation like losing a spouse or a relative, getting married, getting promotions ,pregnancy, dismissal etc.
All the work, the following are typical causes of stress
-Bullying or harassment by any one not necessarily the manager
-Feeling of powerless and uninvolved in determining one own responsibility
-Continues unreasonable performance demands
-Lack of effective communication and conflict resolution
-Lack of job security
-Long working hours
-Excessive time away from home and family
-Office politics and conflicts among staffs
-A feeling that one’s reward is not commensurate with ones responsibility
-Difficult or complex task
-Lack of variety
-Poor physical work conditions
-Conflict in roles and boundaries
S. Michie (2002), Weiten (2000), Alan (2006)
EFFECTS OF STRESS
The human response to stress is complex and multidimensional. Stress affect the individual at several levels. A person reaction to stress can be analyze at three levels;
-Emotional response
-Psychological response
-Behavioral response
Emotional response
When people are under stress, they often react emotionally. Common emotional response to stress is;
1.Annoyance, anger and rage
Stress frequently produces feeling of anger ranging from mild annoyance to uncontrollable rage. This response is particularly likely to be generated by frustration
2.Apprehension, Anxiety and Fear
Stress evolves anxiety and fear more frequently than any other emotion. Anxiety is likely in conflict, pressure, frustration and change
3.Dejection, sadness and grief
Routine setbacks such as poor grades, death, and divorce can produce feeling of dejection and grieve
Psychological response
The degree of stress experienced depends on the functions of the protective psychological mechanism referred to as, Alarm Reaction, resistance and exhaustion.
The technical name given to these three phases of body reaction is a general adaptation syndrome (GAS). The first phase called the Alarm phase; an alarm reaction occure when the organisms first recognize the existence of threat. In this response, the body mobilizes it self to fight or to challenge. The reaction is referred to as a fight response. Our muscles turns and breathing and heart rate become more rapid.
The second phase is the resistance stage or adaptation stage. Here, the body response stabilizes when it learn that the stressor in the environment is no longer a threat to our safety.
If the stressor continues, the third phase called the Exhaustion phase set in. The continues stress response begins to damage the body, producing risk of stress related diseases. Kosslyn(2001), Weiten(2000), Mieche (2002).
Some physical symptoms of stress are nausea and headache.
BEHAVIORAL RESPONSE
The behavioral response to stress is the most crucial dimension of all the levels of reaction to stress. Some of the behavioral reactions are;
-Aggressive behavior
Aggression behavior is any behavior that is intended to heart someone either physically or verbally.
-Given up
When confronted with stress, people sometimes simply give up or withdraw from the battle
-Indulging oneself
Stress sometimes leads to self-indulgence. When trouble spreads, many people engage in excessive consummatory behavior. That is unwise pattern of eating, drinking and using drugs.
Some signs of stress
-Sleep difficulties
-Loss of appetite
-Poor concentration or poor memory retention
-Uncharacteristic errors
Anger
-Violent and anti-social behavior
-Emotion out best
-Alcohol or drug abuse
-Nervous habits
STRESS MANAGEMENT
The cost of stress in terms of human suffering, social and occupational impairment and illness are enormous. The need for better understanding and management of the stress is a high priority in our increasingly complex society, which continuously challenges our coping ability.
Coping is the inclusive term for the multitude of techniques that people in the management of stress.
Coping methods are strategies people use to control stressful events and their reactions to them. Different people tend to use different coping strategies and the use of particular strategy may depend on the particular situation.
Coping methods fall in to two broad categories:
1.Problem –focused method
2.Emotional –focused method
Problem –focused method
The problem-focused coping is focused on changing the environment itself, or how the person interacts with the environment.
There are two methods of problem –focused coping.
1.Anticipatory coping
2.Social support
Anticipatory coping has the components
1.Gain information –Acquiring as much as possible about an impending stressful event.
2.Developing a plan of action – to develop a plan of action, the person must first anticipate the demands to be place on him/her and practice responses to these demands.
3.Self-monitoring –self monitoring involves the ability first to recognize and then controls signs of the stress reaction.
Social support – This is the help that others can provide in coping with stress. It takes three major forms:
1.Giving the individual information and practical problems -solving guidance in dealing with the stressful events.
2.Giving care, affection and nurturance
3.Providing encouragement and reassurance
Emotional focused method
The coping focused on changing the person’s emotional response to the stressful event. Three methods are used:
·Defense mechanism
·Reappraisal of the situation
·Arousal reduction
DEFENCE MECHANISM
These are the means of warding off anxiety and other negative feelings caused by the threat of unacceptable sexual and aggressive derives. These are usually unconscious and automatic method of reducing stress when situation does not allow for direct coping methods.
Two most frequent cited mechanisms are:
Denial –A reality distortion that blocks the perceive accurately and thus act on external threat.
Intellectualization –in intellectualization, perception is not distorted, but the emotion arousal that normally accompanies stress is blocked from conscious awareness.
Reappraisal of the situation
This is a method used to reduce stress by modifying the perception of threat if the stress depends on the perception of events. To reappraise means to re-examine one’s initial perception of a situation. It relies on the ability to weigh evidence and convert a negative appraisal into a positive one.
Arousal Reduction
This can be defined as any voluntary method of directly inhibiting stress endues physiological arousal and its associated symptoms.
Three methods are used.
1.Sedative drugs
2.Physical exercise
3.Relaxation training
Crider A.B (1993)
Work place stress management
Most interventions reduce the risk associated with stress in the work place involve both individual and organization approaches.
Individual Approach –this includes include training and one-to-one psychology services that is counseling. This should change individual skills and resources and help the individual to change their situation.
Training helps to prevent stress through:
·Becoming aware of the signs of stress
·using these to interrupt behavior patterns when the stress reaction is just beginning
·Analyzing situation and developing active plan to minimize the stressors.
·Learning skills of active coping and relaxation, developing a life style that creates a buffer against stress.
·Practicing the above in low stress situation first to minimize chances of early success and boost self-confidence and motivation continue.
Organization’s Approach- The prevention and management at work places. Stress requires organizational approach because of is the organization that create the stress. Assuring the risk of stress within the organization must take into account the following:
·The likelihood and the extent of ill health which occur as a result of exposure to a particular hazards.
·The extends to which an individual is exposed to the hazards
·The number of employees exposed to the hazards.
The analysis of stressful hazards at work should consider all aspects of its design and management, and its social and organizational context.
