MKT 100 Chapter Notes -Dynamic Pricing, Wayfair, The Home Depot

8 views9 pages

inxvho

6 Jan 2023

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

itskiyethangeli and 39956 others unlocked

MKT 100 Full Course Notes

Verified Note

1 document

Document Summary

8. 1 the pricing framework and company"s pricing objectives. Automatic dynamic pricing, where the price varies according to demand or target group, means that a consumer may see different prices on different websites at different times of the day and when using different browsers. Profits can be increased by raising the price if costs are stable and customers are loyal or without alternatives. As a short term competitive strategy, price is a way to attract customers who were not using the product or service, or to cause competitors" customers to switch brands. Pricing can be used to attract new customers who are not currently using the product or service. It can attract competitor"s customers to switch brands. Price can be managed directly by reducing the actual price the customer pays or through price discounts on purchase: lower prices reduce the financial risk the customer may feel, loyalty programs are another type of price reduction method.

Related Questions

How is your assessment of companies like Facebook that gather information about your browsing patterns? What benefits and drawback does this pose for consumers? If you were a business owner, what sorts of information would you gather on your customers and how might you utilize it?

greycattle791

A: Make a list of 5 internal data (specific data points such as “first name” and “sales per day”) that the following companies would have in their database: Amazon.ca, Pharmaprix, and Concordia University. (different ones for each. They should not be ordinary ones, i.e. first name and last name!).

B: For each one, write a brief logic that why you think it could be a useful one. i.e. for birth date, you can say they might use it to congrats and provide coupons.

Hint: Name and sales per day are the two examples of distinct information, which a company might have in its internal database. Another piece of information might be, for example, email address, gender, price trends, and so on. I am asking for a list containing 5 of such information - not real or mock examples: i.e. John, $20, etc - for each of the four companies. This information could be stored by different methods, i.e. when you sign up or purchase products from Amazon, you provide Amazon several different kinds of information. The same might be once you want to pick up your prescribed medicine from the Pharmaprix. The goal of this assignment is to think of different types of information a company has.

Attention to these points are required:
1. These companies are not the same in nature (so not all information that they have is the same)
2. There are different methods that a company acquires the data (so not all information that it has should look the same, i.e. all are not demographic-based information).
3. If a consumer walks into a Pharmaprix store and makes a cash purchase, that the company collects no data about that person at all—but that they do have data about the item purchased.
4. More importantly, the internal data is not about just customers! It could be about the inventory, cash flow, customer satisfaction, and so on! So the list should consist of a piece of information from any of the following departments (not all from the same source): marketing department, customer service department, accounting department, operation reports, sales force, and marketing channels.

wondergeek777

To create successful new products, a company must _______.

A. obtain successful products through acquisitions instead of doing internal development
B. spend more on R&D than its competitors
C. focus their new product development efforts only on consumers
D. cut costs to keep the price of new products low
E. understand its consumers, markets, and competitors and develop products that deliver superior value

rubyraven250

MKT 100 Chapter Notes -Dynamic Pricing, Wayfair, The Home Depot

MKT 100 Full Course Notes

Document Summary

Get access

Related Documents

MKT 100 Chapter Notes - Chapter 11: Monopolistic Competition, Pricing Strategies, Oligopoly

MKT 100 Lecture Notes - Lecture 10: Experience Curve Effects, Price Ceiling, Price Skimming

MKT 100 Lecture Notes - Lecture 10: Marketing, Demand Curve, Monopolistic Competition

Related Questions