E-Marketing,3rd editionJudy Strauss, Adel I. El-Ansary, andRaymondFrostChapter11:Price0000L010010101001110100001001011PrenticeHall2003口
E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 11: Price © Prentice Hall 2003
OverviewThe InternetChanges PricingStrategiesBuyerandSellerPerspectivesBuyer ViewSeller ViewPricing StrategiesFixed PricingDynamic PricingBartering0000OOOOOOOOOOOOOOOOOO01O
Overview The Internet Changes Pricing Strategies Buyer and Seller Perspectives Buyer View Seller View Pricing Strategies Fixed Pricing Dynamic Pricing Bartering
The Internet Changes Pricing StrategiesPriceis:The amount of money charged foraproduct orserviceThe sum of all the values (such as money,time,energy,andpsychic cost)that buyers exchange for the benefits of having or using a good or serviceSetby negotiation between buyers and sellers.Fixedpricepolicies:Onepriceforallbuyers,A relativelymodern idea=endof the nineteenth century,.Arose with the development of large-scale retailing and mass productionNow,one hundred years later= The Internet is taking us back to an era of dynamic pricing=Varyingpricesforindividual customers070010101001117010000100011010010
The Internet Changes Pricing Strategies • Price is: • The amount of money charged for a product or service, • 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, • Set by negotiation between buyers and sellers. • Fixed price policies: • One price for all buyers, • A relatively modern idea = end of the nineteenth century, • Arose with the development of large-scale retailing and mass production. • Now, one hundred years later: The Internet is taking us back to an era of dynamic pricing: = Varying prices for individual customers
The Internet Changes Pricing StrategiesIn the past, the Internet was used forMarketingcommunicationbenefitsDistributionchannelbenefitsBUT it has a hugepotential tochangepricing strategyTheInternetproperties allowforpricetransparencytheideathatbothbuyers and sellerscanviewallcompetitive pricesforitems sold online.Thisfeature wouldtendtocommoditizeproducts soldonline,makingthe Internetanefficient market07001010100111701000010070111010010
The Internet Changes Pricing Strategies • In the past, the Internet was used for: • Marketing communication benefits, • Distribution channel benefits. • BUT it has a huge potential to change pricing strategy. • The Internet properties allow for price transparency = the idea that both buyers and sellers can view all competitive prices for items sold online. This feature would tend to commoditize products sold online, making the Internet an efficient market
OverviewTheInternet ChangesPricing StrategiesBuyerandSellerPerspectivesBuyer ViewSeller ViewPricing StrategiesFixed PricingDynamic PricingBartering0000OOOOOOOOOOOOOOOOOO010
Overview The Internet Changes Pricing Strategies Buyer and Seller Perspectives Buyer View Seller View Pricing Strategies Fixed Pricing Dynamic Pricing Bartering