1 / 10

E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost

E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 11: Price © Prentice Hall 2003 Price The sum of all the values (such as money, time, energy, and psychic cost) that buyers exchange for the benefits of having or using a good or service.

Ava
Download Presentation

E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. E-Marketing, 3rd editionJudy Strauss, Adel I. El-Ansary,and Raymond Frost Chapter 11: Price © Prentice Hall 2003

  2. Price • The sum of all the values (such as money, time, energy, and psychic cost) that buyers exchange for the benefits of having or using a good or service.

  3. The Internet Changes Pricing Strategies • Change from fixed price policies to dynamic pricing • Buyer power online has increased • Price transparency

  4. Pricing: Efficient Market • Customers have equal access to information about products, prices and distribution • Expectations • lower prices • high price elasticity • frequent price changes • smaller price changes • narrow price dispersion

  5. Mainly true thanks to: Shopping agents Reverse auctions Tax-free zones Venture capital Competition Lower costs: Self service JIT inventory Overhead Customer service Printing and mailing Digital product distribution costs Lower Prices

  6. Frequent price changes due to: Competition Shopping agents Easiness Volume discount Experimentation Smaller price change increments: Price-sensitive consumers Shopping agents Price Changes

  7. Non-efficient market • Price dispersion is not narrow • Explanation for price dispersion: • How goods are priced online • Delivery options • Time-sensitive shoppers • Branding • Switching costs • Second-generation shopping agents • Metamediaries • Other explanations?

  8. Upward Pressure on Internet Pricing • Distribution • Affiliate programs • Site development and maintenance • Marketing and advertising

  9. Pricing Strategies • Penetration pricing • Market skimming pricing • Price leadership • Promotional pricing • Segmented pricing • Negotiation • Dynamic pricing

  10. Key Terms • Dynamic pricing • Efficient markets • Fixed pricing • Price • Price dispersion • Price elasticity • Price leadership • Price transparency • Promotional pricing • Reverse auction • Second-generation shopping agents

More Related