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A customer checks you out … How did he know you existed? What brought him to you? How do you get more…
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Theoretically, if you know the elasticity of demand you can optimize the price through economic price optimization. You may think that this approach would give the best price in practice as well since the word “optimal” is implied in its name alone. But dig beneath its sexy title you will generally find an ugly mess. So what do we do with it?
More Energy Drinks have become the new star of the supermarket and drug store checkout counters. They are incredibly profitable throughout the channels of trade. One of the most popular – and profitable – is 5-Hour Energy.
More Why do Americans generally get paid more to do business than to do engineering or science? Is it that there is greater…
More The much-anticipated Bombardier CSeries commercial airplane line provides a uniquely positioned offering, boasting 20% fewer CO2 emissions, 20% fuel savings, and 15%…
More Apple has had a beating both in the market and the press lately. Despite record quarterly profit, they lost their number-one stock spot to Exxon Mobil. By some prognostications, Samsung is rising in the smartphone market, and Huawei is taking a stronger foothold on the price-sensitive emerging-market field, while Apple is stumbling. Well, for those who failed to sell Apple at above $700 prices and now see it below $450, what did you expect?
More Business guru Harvey Mackay stated, “The Japanese have a very simple way of describing the typical American marketing plan: READY? FIRE! AIM.” Sadly little has changed in American business. This is a major reason why the American economy is in constant crisis, and obsolete marketing departments built on late twentieth-century dogma now resemble the spending habits of Communist central planning: disconnected from reality, economically inefficient and lacking accountability to the right things.
More Two academic giants, Nobel Prize Winner (in economics) Gary Becker of the University of Chicago and Kevin W. Murphy another U. of Chicago economics professor, argue that we have lost the war on drugs. So is it time to legalize and tax this industry?
More A study conducted by Reims Management School (RMS) reveals that consumers are often put off by promises of lowest prices which are coupled with high refund guarantees – contrary to the usual strategies of many top retailers.
More Economic price optimization has a lot to tell us, but not necessarily the price which optimizes the firm’s profits. Economic price optimization relies on a defined demand curve. Unfortunately, defining the demand curve with sufficient precision and reliability for decision making can be done for only a subset of challenges. So if this method is not useful for pricing in many cases, what use is it?
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