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There is an assumption that certain low-cost providers (think Costco, Amazon, Target, or Walmart, for example) must necessarily have the lowest prices on a given item. However, that assumption is often false. Brands count on customers being
sticky and not comparison shopping for every single item. The presence of a membership fee makes that stickiness even truer, as the author explains.
Kyle Thompson-Westra is a Consultant at Wiglaf Pricing. His background includes digital strategy, marketing analytics, and international relations. He can be reached at firstname.lastname@example.org.