ACCT 210 Lecture Notes - Lecture 6: Web Analytics, Rakuten.Co.Uk, Psychological Resistance
6 Sep 2020
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Document Summary
Internet increases price transparency: pricing a key strategic marketing issue, pricing strategies often ad-hoc, rule of thumb . Integrate pricing with strategic marketing positioning and objectives. Changing prices: price increases more difficult than decreases, achieving price increases often essential, price reductions: constant pressure due to recession, excess capacity, competitor moves, higher customer value However: reductions easily copied, negatively affects everyone, non-loyals revert back, undermines quality perception and brand equity, price increases: incremental, easier during inflationary periods, non-homogenous products, only sure way via higher value and innovation. Johnson: online search is quite limited, i. e. 1. 2 book visits per month. Supermarkets: digital pricing revolution: replace paper price labels with electronic tags, technology enables shops to react to events in real-time, i. e. offers for reduced price items. E-prices linked to shop"s computer systems move up or down by up to 90% in a day or ice cream during heatwaves: ability to take labour out and reduce costs.
