Pricing Strategy and the Net Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Among the variables of marketing, the price has a direct impact on the company's revenue. The emergence of a new environment for buyers and sellers to interact, the Internet is changing the issue price for the customers and suppliers in an unprecedented way. On the one hand, there is an Internet trend, level pyramid customer value (determined by the value of the firm's clients) because the technology that facilitates the search for clients, customers control over transactions, ensuring that the client can do, rather than the price of a return to the one-on- one talks and the commercialization of the market. Compensatory dynamics Internet allow us in some cases to differentiate the prices all the time to build a client switching barriers, "de menu" price, to distinguish it from other aspects of the decision to purchase and reduce operational costs. The conceptual model is proposed to identify Internet price movements and market forms, depending on the relative strength of the buyer and seller. These dynamics suggest that pricing decisions can be as creative, which were made on the development of new products and services or campaigns. In fact, the price may be the last frontier for marketing creativity. In the hands of the wise, the Internet can be a digital wagon that carries the price of pioneers on the edge digital boundaries. "Hide
by Leyland Pitt, Pierre R. Burton, Richard T. Watson, Michael Ewing Source: Business Horizons 10 pages. Publication Date: March 15, 2001. Prod. #: BH059-PDF-ENG