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Clear communication about surge pricing is good customer service but without conveying its benefits, Uber is increasing the price sensitivity of its riders. This is a well-known effect of overemphasizing price in marketing communications. But price is only one reason that customers choose Uber. Why not focus on the benefits of surge pricing?
More Getting back to the shop-floor example: what if you realized that you ended up buying a few million dollar worth machinery but had to retain the workforce to run the machines as per requirements? In fact you ended up renting a bigger floor to accommodate the humans and machines?
More The use of comparable equivalents leads to an improvement in the meaningfulness and accuracy of the benchmark approach, yet the determination of what constitutes the comparable equivalent is made by the consultant him/herself. This approach is fraught with error. Does the lawyer think too highly of him/herself or is he/she being too timid?
More Much of this has to do with poor economic policy, the low price of oil (upon which much of Venezuela’s exports depend), and the strong dollar. In such situations, dollars become even more valuable to hoard, which in turn creates more inflation in the bolivar, leading to a positive feedback loop. But how does this lead to shortages of something as basic as toilet paper?
More Both Williams and Mason are frank about past mistakes. They grew too quickly. They didn’t respond appropriately to criticism. Accounting was a mess. The business model required too much labor in place of operational efficiency and scalable systems. But both are optimistic about the core problem that the company is trying to solve: e-commerce for small and local businesses.
More Your business plan should be the driver for every action you take, including developing your digital marketing strategy. From setting your ad budget to identifying where your target market hangs out, reading your business plan is like consulting a digital marketing compass that reliably points north.
More Pricing strategy is not executed by simply raising prices. If that’s all it took, then every fool would do pricing strategy, and every business owner would have a clear pricing plan.
More The war for the new world is not just different because of the absence of a defender – it could be even more complex since the sockets itself may not be pre-defined.
More Without a strong understanding of these customers, as well as the effort to continuously reevaluate this understanding, companies will see their share slip away to better positioned competition. Pricing requires just as much strategy as product; the right product at the wrong price is no longer the right product.
More Join Tim J. Smith PhD in a new video blogging series covering what’s affecting pricing, the economy and you. In this month’s vlogs, gain insight on everything from Imaginary Pricing to liquor sales in Africa.
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