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Pricing

253 articles found in this category.

Strategic Movements October 2019

October 2019 Pricing

Market Share? Meh. Customer Satisfaction and Brand Equity? YES, Please! Managers care a lot about market share, but should they? Meta-research by Alexander Edeling and Alexander Himme in the Journal of Marketing entitled “When Does Market Share Matter” shows that market share does, on average, have a small positive impact on company value, but that […]

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Is That Membership Paying Off?

October 2019 Pricing

My wife’s favorite holiday is Halloween. As such, we were in the market for a life-sized skeleton for the house. We also recently became Costco members, so that seemed the natural place to get some discount decorations. We purchased some (I mean a lot) of Halloween candy there, but didn’t pull the trigger on Costco’s […]

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The Many Flavors of Price Variance

October 2019 Pricing

One of the most insightful steps of any pricing project is identifying and investigating price variances. Price variances are price differences that exist between customers for the same offering. There are two essential price variance questions to answer: Do price variances exist in the dataset, and Which factor (or factors) is driving the variance? Generally, […]

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Strategic Movements September 2019

September 2019 Pricing

J.M. Smucker Co Passed Input Savings onto Price Cuts. Profits? They fell of course. Q2 2019 found that net sales (revenue) decreased 6%, and profits suffered more.  From a pricing perspective, this is completely to be expected.  Why would an executive do something proven to harm profits?  CEO Mark Smucker spoke about the dramatic decrease […]

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Organizing for Pricing Excellence

September 2019 Pricing

What organizational factors make for pricing excellence in a company? Moorman and Day discussed the academic research on the development of excellence in marketing organizations.  We find truths in their work that translate well to the specific field of pricing, one of the four elements of the marketing mix. One could describe pricing excellence as […]

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The Relationship of Price and Demand

August 2019 Pricing

For this article, I am going to discuss how we model the relationship between price and demand. Most people have an intuitive understanding that when the price of a good increases, the demand will decrease. Conversely, when the price of a good decreases, the demand will increase. The change in demand according to a change […]

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Strategic Movements August 2019

August 2019 Pricing

Online Grocer Pricing Thrive Market requires a $60 annual fee and offers free shipping for orders over $49. Public Goods requires a $59 annual fee and offers free shipping for orders over $45. Brandless requires a NO annual fee and offers free shipping for orders over $48. All three of these companies focus on house […]

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Can Money Buy Your Morals?

July 2019 Pricing

Classical economics assumes that our rational self-interest will guide our decision making. The first part of that assumption, the “rational” part, was proven to be a premise needing clarification by the work of Kahneman and Tversky in their 1979 paper on Prospect Theory. This seminal work led to an entirely new branch of economics, best […]

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