Can Smarter Pricing and Promotion Reduce the Emphasis on Discounting
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Personalised Pricing in the Digital Era
Organisation for Economic Co-operation and Development DAF/COMP(2018)13 Unclassified English - Or. English 20 November 2018 DIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRS COMPETITION COMMITTEE Cancels & replaces the same document of 12 October 2018 Personalised Pricing in the Digital Era Background Note by the Secretariat 28 November 2018 This document was prepared by the OECD Secretariat to serve as a background note for item 1 of the joint meeting between the Competition Committee and the Committee on Consumer Policy on 28 November 2018. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. More documentation related to this discussion can be found at: www.oecd.org/daf/competition/personalised-pricing-in-the-digital-era.htm Please contact Mr. Antonio Capobianco if you have any questions about this document [E-mail: [email protected]] JT03439922 This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ DAF/COMP(2018)13 Personalised Pricing in the Digital Era Background Note by the Secretariat* As data analytics and pricing algorithms become common business practice in the digital era, there are growing concerns about the possibility that companies use such tools to engage in personalised pricing, a form of price discrimination that involves charging different prices to consumers according to their willingness to pay. While personalised pricing has the potential to improve allocative efficiency and benefit low-end consumers who would otherwise be underserved, in some occasions it can also lead to a loss in total consumer welfare. -
A Comparative Analysis of Mobile and Email Marketing Using AIDA Model
J. Basic. Appl. Sci. Res., 4(6)38-49, 2014 ISSN 2090-4304 Journal of Basic and Applied © 2014, TextRoad Publication Scientific Research www.textroad.com A Comparative Analysis of Mobile and Email Marketing Using AIDA Model Fazal Ur Rehman1; Tariq Nawaz; Muhammad Ilyas and Shabir Hyder Department of Management Sciences, COMSATS Institute of Information Technology, Pakistan Received: February 22, 2014 Accepted: May 4, 2014 ABSTRACT This study assessed the effectiveness of mobile and email marketing channels using AIDA model. The study used questionnaires based survey to collect data. The collected data were analyzed through logistic regression. The study is based on the marketing channels adopted by a mega store. Results indicated that mobile marketing was more effective as compared to email marketing. This study was unique in the sense that comparison between both channels based on AIDA model was analyzed for the first time. It is suggested that marketing professionals can increase their sales using mobile marketing; however, this effort should be supplemented by using e-mail marketing. KEY WORDS: Mobile Marketing, Email Marketing, AIDA Model INTRODUCTION Advanced technology has altered the way of doing business and minimized distances among businesses and its customers. Nowadays, it is easy for businesses to intermingle with customers efficiently and quickly at lower cost and shorter period of time around the world. In the contemporary business environment, mobile phone and electronic mail play important role in communication. Mobile marketing is the use of cell phones as a source of marketing communication. Shankar and Balasubramanian's (2009) defined it as “the two way communication and promotion of an offer between a business and its customers via cell phones”. -
Reuters Institute Digital News Report 2020
Reuters Institute Digital News Report 2020 Reuters Institute Digital News Report 2020 Nic Newman with Richard Fletcher, Anne Schulz, Simge Andı, and Rasmus Kleis Nielsen Supported by Surveyed by © Reuters Institute for the Study of Journalism Reuters Institute for the Study of Journalism / Digital News Report 2020 4 Contents Foreword by Rasmus Kleis Nielsen 5 3.15 Netherlands 76 Methodology 6 3.16 Norway 77 Authorship and Research Acknowledgements 7 3.17 Poland 78 3.18 Portugal 79 SECTION 1 3.19 Romania 80 Executive Summary and Key Findings by Nic Newman 9 3.20 Slovakia 81 3.21 Spain 82 SECTION 2 3.22 Sweden 83 Further Analysis and International Comparison 33 3.23 Switzerland 84 2.1 How and Why People are Paying for Online News 34 3.24 Turkey 85 2.2 The Resurgence and Importance of Email Newsletters 38 AMERICAS 2.3 How Do People Want the Media to Cover Politics? 42 3.25 United States 88 2.4 Global Turmoil in the Neighbourhood: 3.26 Argentina 89 Problems Mount for Regional and Local News 47 3.27 Brazil 90 2.5 How People Access News about Climate Change 52 3.28 Canada 91 3.29 Chile 92 SECTION 3 3.30 Mexico 93 Country and Market Data 59 ASIA PACIFIC EUROPE 3.31 Australia 96 3.01 United Kingdom 62 3.32 Hong Kong 97 3.02 Austria 63 3.33 Japan 98 3.03 Belgium 64 3.34 Malaysia 99 3.04 Bulgaria 65 3.35 Philippines 100 3.05 Croatia 66 3.36 Singapore 101 3.06 Czech Republic 67 3.37 South Korea 102 3.07 Denmark 68 3.38 Taiwan 103 3.08 Finland 69 AFRICA 3.09 France 70 3.39 Kenya 106 3.10 Germany 71 3.40 South Africa 107 3.11 Greece 72 3.12 Hungary 73 SECTION 4 3.13 Ireland 74 References and Selected Publications 109 3.14 Italy 75 4 / 5 Foreword Professor Rasmus Kleis Nielsen Director, Reuters Institute for the Study of Journalism (RISJ) The coronavirus crisis is having a profound impact not just on Our main survey this year covered respondents in 40 markets, our health and our communities, but also on the news media. -
Multiple Unit Price Promotions and Their Effects on Quantity Purchase Intentions Kenneth C
Journal of Retailing 83 (4, 2007) 411–421 Multiple unit price promotions and their effects on quantity purchase intentions Kenneth C. Manning a,∗, David E. Sprott b,1 a Colorado State University, College of Business, Fort Collins, CO 80523-1278, United States b Washington State University, College of Business, Pullman, WA 99164-4730, United States Abstract Consumers often encounter multiple unit price promotions whereby a price reduction is presented as a reduced total price for multiple units of the same item (e.g., an item regularly priced at $1.25 each is promoted as “5 for $5”). In a series of experiments, we find that the positive effect of these promotions on quantity purchase intentions is contingent on the magnitude of the quantity specified in the offer and the rate of product consumption. However, offer effectiveness is not influenced by highlighting single unit prices, the unrestricted nature of these promotions, or aggregate savings. As predicted by the selective accessibility explanation, the effect of multiple unit price promotions on quantity purchase intentions is shown to be mediated by accessing anchor-consistent knowledge. An agenda for further research and the implications of our findings for retail practice are discussed. © 2007 New York University. Published by Elsevier Inc. All rights reserved. Keywords: Price promotions; Anchoring effects; Grocery pricing Popular among retailers of packaged goods, multiple unit their sales promotion book. Their results showed that multi- price promotions entail a price reduction in which the sale ple unit price promotions increased the sales of seven brands price is presented for multiple units of an item (e.g., “Sale, 3 to a greater degree than would be expected with single unit for $5, You Save $1.25 on 3”). -
Farm-Direct Marketing: Merchandising and Pricing Strategies
Farm-direct Marketing #3 PNW 203 Merchandising and Pricing Strategies Merchandising refers to the set of strategies that direct marketers use to The Farm-direct make sales. It includes: Marketing Set • Product selection A farm-direct marketing business provides • Processing and packaging both attractive opportunities and unique • Pricing challenges to farm families. The farm-direct • Display marketing series of Extension publications • Inventory control offers information about establishing and developing a range of farm-direct • Advertising enterprises. • Customer service Other publications in the series are: In summary, merchandising is the art of selling. • An Overview and Introduction (PNW 201) • Costs and Enterprise Selection (PNW 202) Merchandising Plan • Location and Facilities for On-farm Sales (PNW 204) Your overall merchandising goal is to sell your products as profitably as • Personnel Management (PNW 205) possible and to build satisfaction and repeat sales. To achieve this goal, you should • Financial Management (PNW 206) develop a comprehensive merchandising plan. Success in merchandising requires • Legal Guide to Farm-direct Marketing providing what the customer wants, where and when she wants it. Direct (PNW 680) marketing customers want a combination of excellent quality and good value • Food Safety and Product Quality (PNW 687) and expect some choice of products and package sizes. For these reasons, proper product selection and handling must be part of a successful merchandising plan. To learn more, consider one of the online courses offered by Oregon State University, Because customers are attracted by a diversity of offerings, effective Washington State University, and University merchandising actually begins with your farm production decisions. Your farm of Idaho: stand or farmers market booth becomes increasingly attractive to customers as it In Oregon—Growing Farms: Successful offers a greater range of the products that they want. -
Innovations in Retail Pricing and Promotions Dhruv Grewal A,∗, Kusum L
Journal of Retailing 87S (1, 2011) S43–S52 Innovations in Retail Pricing and Promotions Dhruv Grewal a,∗, Kusum L. Ailawadi b,1, Dinesh Gauri c,2, Kevin Hall d, Praveen Kopalle b,3, Jane R. Robertson e a 213 Malloy Hall, Babson College, Babson Park, MA 02457, United States b Tuck School at Dartmouth, Dartmouth College, 100 Tuck Hall, Hanover, NH 03755, United States c Whitman School of Management, Syracuse University, 721 University Ave, Syracuse, NY 13215, United States d The Integer Group, United States e Dallas Market Center, United States Received 22 April 2011; accepted 25 April 2011 Abstract Retailers confront a seemingly impossible dual competitive challenge: grow the top line while also preserving their bottom line. Innovations in pricing and promotion provide considerable opportunities to target customers effectively both offline and online. Retailers also have gained enhanced abilities to measure and improve the effectiveness of their promotions. This article synthesizes recent advances in pricing and promotions findings as they pertain to enhanced targeting, new price and promotion models, and improved effectiveness. It also highlights the role of new enabling technologies and suggests important avenues for further research. © 2011 New York University. Published by Elsevier Inc. All rights reserved. Keywords: Pricing; Promotion; Value; Retail strategy; Targeting; Retail technology In 2008, total U.S. retail sales climbed over $3.9 trillion (U.S. 2009), Grewal, Levy, and Kumar (2009), Grewal et al. (2010), Census Bureau 2008), of which approximately $1.4 trillion came Kopalle et al. (2009a), Levy et al. (2004), Neslin (2002), from food, beverage, drug, and department stores and approx- Puccinelli et al. -
Dynamic Pricing: Building an Advantage in B2B Sales
Dynamic Pricing: Building an Advantage in B2B Sales Pricing leaders use volatility to their advantage, capturing opportunities in market fluctuations. By Ron Kermisch, David Burns and Chuck Davenport Ron Kermisch and David Burns are partners with Bain & Company’s Customer Strategy & Marketing practice. Ron is a leader of Bain’s pricing work, and David is an expert in building pricing capabilities. Chuck Davenport is an expert vice principal specializing in pricing. They are based, respectively, in Boston, Chicago and Atlanta. The authors would like to thank Nate Hamilton, a principal in Boston; Monica Oliver, a manager in Boston; and Paulina Celedon, a consultant in Atlanta, for their contributions to this work. Copyright © 2019 Bain & Company, Inc. All rights reserved. Dynamic Pricing: Building an Advantage in B2B Sales At a Glance Nimble pricing behavior from Amazon and other online sellers has raised the imperative for everyone else to develop dynamic pricing capabilities. But dynamic pricing is more than just a defensive action. Pricing leaders use volatility to their advantage, capturing opportunities in market fluctuations and forcing competitors to chase their pricing moves. Building better pricing capabilities is about more than improving processes, technology and communication. Pricing leadership requires improving your understanding of customer needs, competitors’ behavior and market economics. Dynamic pricing is not a new strategy. For decades, companies in travel and transportation have system- atically set and modified prices based on shifting market and customer factors. Anyone who buys plane tickets should be familiar with this type of dynamic pricing, but what about other industries? Does dynamic pricing have a role? Increasingly, the answer is yes. -
PRICING and ADVERTISING of CONSUMER ITEMS Act 449 of 1976
PRICING AND ADVERTISING OF CONSUMER ITEMS Act 449 of 1976 AN ACT to regulate the pricing of consumer items and the advertising of consumer items, services, goods, merchandise, commodities, and real property; to prescribe the powers and duties of certain state and local officials in relation thereto; to provide remedies and penalties; and to repeal certain acts and parts of acts. History: 1976, Act 449, Eff. Jan. 1, 1978. Popular name: Scanner Law Popular name: Item Pricing Act The People of the State of Michigan enact: 445.351 Definitions. Sec. 1. As used in this act: (a) “Advertising” means all representations disseminated in any manner by any means for the purpose of inducing, or which are likely to induce, directly or indirectly, the purchase of a consumer item, service, good, merchandise, commodity, or real property. (b) “Automatic checkout system” means an electronic device, computer, or machine which determines the price of a consumer item by using a product identity code, and may but is not required to include an optical scanner. (c) “Class of item” means a group of consumer items which may vary by brand, style, pattern, color, or size other than weight or volume. Items within a class must otherwise be identical and offered at the same total price. (d) “Consumer item” means an article of tangible personal property used or consumed, or bought for use or consumption, primarily for personal, family, or household purposes. (e) “Director” means the director of the department of agriculture or his authorized representative. (f) “Person” means an individual, firm, partnership, corporation, association, or other legal entity. -
Marketing and Promotion
Marketing and Promotion This information sheet provides sport and recreation Where do I start? organisations with a basic understanding of why they To help you get started with marketing and promotion, should be involved in marketing and promotional consider the following: efforts, how to get started and issues to consider when marketing and promoting your organisation, activity or Develop a clear marketing plan outlining the event. strategies and direction for any marketing and promotional activities What is marketing? Be realistic about the time and resources available Marketing is the process of matching a product or and what you are likely to achieve service with a ‘market’. In a sport and recreation Appoint marketing and promotion responsibilities context this means identifying the people that might to a committee member who can oversee the like to be involved with your sport and recreation development and implementation of the marketing activity, club or event. plan. What is promotion? Five basic steps in developing a marketing plan Promotion is the process of bringing a product or 1. Consider what your organisation has to ‘sell’. For service to the attention of the ‘market’. In sport and most sport and recreation organisations this will be recreation terms this is how you ‘sell’ your activity, club their activity, competition or special event. or event to interested people. 2. Determine your target ‘market’. Typically this involves selecting a group with particular Reasons for marketing and promotion demographic characteristics (i.e. age, gender, education, employment, location and income). Marketing and promotion are useful for a variety of purposes, including to: 3. -
Retailer Promotion Planning: Improving Forecast Accuracy and Interpretability
RETAILER PROMOTION PLANNING: IMPROVING FORECAST ACCURACY AND INTERPRETABILITY MICHAEL TRUSOV, ANAND V. BODAPATI, AND LEE G. COOPER MICHAEL TRUSOV his article considers the supermarket manager’s problem of forecast- T is a doctoral candidate at the UCLA ing demand for a product as a function of the product’s attributes and of mar- Anderson School, 110 Westwood ket control variables. To forecast sales on the stock keeping unit (SKU) level, a Plaza, Los Angeles, CA 90095; e-mail: good model should account for product attributes, historical sales levels, and [email protected] store specifics, and to control for marketing mix. One of the challenges here is that many variables which describe product, store, or promotion conditions ANAND V. BODAPATI are categorical with hundreds or thousands of levels in a single attribute. is Assistant Professor at the UCLA Identifying the right product attributes and incorporating them correctly into Anderson School, 110 Westwood a prediction model is a very difficult statistical problem. This article proposes Plaza, Los Angeles, CA 90095; e-mail: an analytical engine that combines techniques from statistical market [email protected] response modeling, datamining, and combinatorial optimization to produce a small, efficient rule set that predicts sales volume levels. LEE G. COOPER © 2006 Wiley Periodicals, Inc. and Direct Marketing Educational Foundation, Inc. is Professor Emeritus at the UCLA JOURNAL OF INTERACTIVE MARKETING VOLUME 20 / NUMBER 3–4 / Anderson School, 110 Westwood SUMMER / AUTUMN 2006 Plaza, Los Angeles, CA 90095; e-mail: Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/dir.20068 [email protected] 71 Journal of Interactive Marketing DOI: 10.1002/dir INTRODUCTION The reliance on the simple “last like” rule became both inefficient and infeasible. -
Advertising and Promotion
Advertising and Promotion EXAM INFORMATION DESCRIPTION Exam Number Advertising and Promotion provides students with an 412 understanding of basic marketing principles and training for Items entry-level job positions in advertising and promotion. Students will experience different advertising methods to reach 37 target audiences, including newspaper, radio, TV, internet, mail, Points outdoor, and special promotion events. Specific skills will help students to create, produce, and effectively evaluate different 61 advertising and promotional strategies. Prerequisites NONE EXAM BLUEPRINT Recommended Course Length STANDARD PERCENTAGE OF EXAM ONE SEMESTER 1- Market Identification and Creativity 25% National Career Cluster 2- Promotion 23% 3- Different Forms of Media 33% HOSPITALITY AND TOURISM 4- Brand Image and Consumer Psychology 8% MARKETING 5- Careers in Advertising and Promotion 11% Performance Standards INCLUDED (OPTIONAL) Certificate Available YES www.precisionexams.com Advertising and Promotion 412.2021 STANDARD 1 Students will understand the concept of market identification and creativity in the promotional industry. Objective 1 Understand concepts of market and marketing identification. 1. Define the following terms: market, product life cycle, target market, mass marketing, and marketing segmentation (demographic, geographic, psychographic, and behavioral [product benefits] segmentation). 2. Describe advantages and disadvantages of mass marketing and other market segmenting. 3. Explain the importance of target markets to businesses. 4. Explain why the use of marketing segments is increasing. 5. Describe the concept of focus groups. 6. Understand the use of conducting market research. 7. Analyze the product life cycle and explain the role of promotion and advertising during each phase. Objective 2 Understand the concept of creativity. 1. Define the term creativity. -
Essays on Participatory Pricing, Branding, and Consumer Behavior
University of Rhode Island DigitalCommons@URI Open Access Dissertations 2018 ESSAYS ON PARTICIPATORY PRICING, BRANDING, AND CONSUMER BEHAVIOR James Blair University of Rhode Island, [email protected] Follow this and additional works at: https://digitalcommons.uri.edu/oa_diss Recommended Citation Blair, James, "ESSAYS ON PARTICIPATORY PRICING, BRANDING, AND CONSUMER BEHAVIOR" (2018). Open Access Dissertations. Paper 822. https://digitalcommons.uri.edu/oa_diss/822 This Dissertation is brought to you for free and open access by DigitalCommons@URI. It has been accepted for inclusion in Open Access Dissertations by an authorized administrator of DigitalCommons@URI. For more information, please contact [email protected]. ESSAYS ON PARTICIPATORY PRICING, BRANDING, AND CONSUMER BEHAVIOR BY JAMES BLAIR A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION UNIVERSITY OF RHODE ISLAND 2018 DOCTOR OF PHILOPSOPHY DISSERTATION OF JAMES BLAIR APPROVED: Dissertation Committee: Major Professor Daniel Sheinin Albert Della Bitta Jing Jian Xiao Stephen Atlas Norbert Mundorf Nasser Zawai DEAN OF THE GRADUATE SCHOOL UNIVERSITY OF RHODE ISLAND 2018 ABSTRACT Participatory pricing consists of unique pricing mechanisms which can provide firms an opportunity to differentiate themselves by allowing consumers to have some influence in setting the price in transactions. Many firms attempting to utilize participatory pricing mechanisms have struggled or even failed in their attempts. Understanding the role of branding with participatory pricing and how it is associated with consumer perceptions, attitudes, and behaviors would be beneficial as more firms attempt to utilize this pricing mechanism. Additionally, examining how giving consumers autonomy in part of the pricing mechanism could provide marketing managers insights into their purchasing preferences and behaviors.