Market structures and pricing Revenues Consumers * Inverse demand curve gives willingness-to-pay * Benefit consumer(s) derive(s) from additional good; * Area under inverse demand curve measures total willingness-to-pay‚ total benefit or total surplus. * Maximum price I can charge as producer determined by inverse demand function * Marginal revenues; revenue of next unit I sell Strategies * Profit maximization * Marginal profits equal to 0 (MR=MC) *
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AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724 SUBJECT:-E-COMMERCE MANAGEMENT COURSE : Total Marks : 80 Attempt all the cases Case 01 GM’s E-Business Strategy INTRODUCTION US-based General Motors (GM)‚ the largest automobile company in the world‚ was in trouble in the late 1990s. The company’s market share in the US automobile market had been steadily declining from a high of 50% in the late 1960s to a low of 28% by 1999.Analysts pointed out that GM had been in the grip of a vicious
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Allowances Loss-Leader Pricing Special-Event Pricing Cash Rebates Low-Interest Financing Longer Payment Terms Warranties & Service Contracts Psychological Discounting Customer-Segment Pricing Product-Form Pricing Image Pricing Channel Pricing Location Pricing Time Pricing Price Discrimination Differentiated Pricing Promotional Pricing Geographical Pricing (Cash‚ Countertrade‚ Barter) Changing Pricing Environment How Companies Price Understanding Pricing Consumer Psychology and Pricing Reference Prices
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Huang Ge MGT401 Prof. Patton‚ Joseph 2/3/2015 Case 2 1. Describe Dropbox’s “Freemium Pricing strategy” to get users and revenue. What was this strategy? What did the company hope to accomplish with this strategy? Dropbox is a company providing remote-storage over the internet‚ cloud storage service as well. The “Freemium Pricing Strategy” is a popular pricing strategy which company provide client a basic service without paying a dime and premium services were paid. Dropbox offers 2GB cloud storage
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common factors. While several macroeconomic variables do have some relationship with different risky assets‚ the APT postulates that the pricing of risky assets depends only on the set of variables whose influence is felt significantly by all risky assets together. This set of variables is known as the common factors of the APT.” (Otuteye 1998) An arbitrage pricing theory is basically a theory that is copied from an issue model‚ using alteration or expansion and arbitrage arguments. This theory explains
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| The London 2012 Olympic Games | The LOCOG’s Ticket Pricing Strategy | | | | Contents 1. Introduction 2 2. Setting the price 2 2.1. Selecting Pricing Objectives 2 2.2. Determining Demand 3 2.3. Estimating Cost 3 2.4. Analysis of competitor’s costs/prices/offers 3 2.5. Selecting a pricing method 4 2.6. Selecting a final price 5 3. Pricing and Distribution Strategy 5 4. Analysis 5 4.1. Limitations 5 4.2. SWOT 5 4.3 Marketing Mix 5 5. Summary/Conclusion 5
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1. " Global Transfer Pricing: A Practical Guide for Managers "‚ Ralph Drtina‚ Jane L. Reimers‚ S.A.M. Advanced Management Journal‚ v74n2‚ Spring 2009. Transfer Pricing Article Summary The authors give a beneficial guide for managers for selecting and implementing a transfer pricing policy. According to the article‚ transfer pricing are the amounts charged for goods and services exchanged between divisions of the same company. In a multinational company strict international tax laws regulate
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iTunes Music Pricing Josefina Anorga Carlos Albizu University iTunes Music Pricing Adopting a variable pricing policy might increase the sales revenue of Apple’s Music Store. Pricing the more popular songs at a higher price and the less popular ones at a lesser rate would generate higher sales for the lesser popular ones. Thus making up for the slight drop in sales of expensive tracks and ultimately working towards overall increased revenues. Although most songs with a higher price point
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Compare and contrast CAPM and APT? Capital asset pricing model (CAPM) and arbitrage pricing theory (APT) are both methods of assessing an investment’s risk in relation to its potential reward and whether the potential investment yield is worthwhile. CAPM developed by Sharpe 1964. The basic theory behind this model is that investor needs to be compensated for Time Value of Money and the risk that they are taking. The time value of money is represented by the risk-free (rf) rate in
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NESTLE PRICING STRATEGY Price In Price strategy‚ Nestle has adopted the strategy of non-price competition. It is offering one price for NPL to all. It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors. “Price is the amount of money and/or other items with utility needed to acquire a product and utility is an attribute with potential to satisfy the wants.” A product price influences wages‚ rent‚ interests‚ and profits. Some
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