Archives tagged: retail
Not only will the American economy be hurt, these actions by an American President with very limited knowledge about economics, will affect the economies of many nations.
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The future may not become a dystopian duopoly of just Amazon and Walmart. There will be competition, but which and who? In dirt one can find gems.
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Pricing is not only numbers, but strongly psychological and emotional. Certain norms emerge that dictate how products and services are sold in different industries. Customers come to expect those norms, whether or not they are necessarily the most economically efficient.
More The Federal Aviation Administration is contemplating an $8 increase on domestic round-trip ticketing fees. In response, Delta Air Lines Inc. claims that for every $1 increase in facility charges, passenger demand declines by more than 1%. That would imply a primary demand elasticity of about three. Seems right. So, an $8 facilities charge increase would decrease flight travel by 8%.
More Apple and Qualcomm are in a feud. Issue: Qualcomm makes and holds patents over much of the modem chips that handle communications between wireless devices and cellular networks. Actions: Apple sued Qualcomm over market dominance, and Qualcomm responded by withholding software required to configure their next-gen chips.
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Certain retail industries such as groceries, cars, cellphones and airlines to name a few have always been oligopolies, but more and more additional retail product categories are leaving the world of pure competition, and entering the world of oligopoly.
More Sonos Inc. felt the heat of Amazon’s Alexa in the in-home wireless sound movement. What to do? If you can’t beat them, join them. Working with Amazon, Alphabet, and Apple, Sonos is planning to make smart speakers for all of them. Smart move Sonos for the increasing Smart Home.
More Wendy’s achieved another quarter of same store sales growth. Was it their sassy social media campaign that reminds detractors of the existence of refrigerators? Was it their new menu items? Or was it the fast food chain’s competitive pricing? Of the three, I think it was their social media campaign that propelled otherwise strong product and pricing strategy to outperform.
More Prof. Haskett defines the “wheel of retailing” as the concept where retailers enter the market through low-price strategies to build market share. With the high market share, the retailer would shift its strategy from attracting new customers to increasing profit margins through higher pricing. In implementing the higher pricing strategy, the retailer opens spaced for a new lower price retailer to come into the market as the wheel turns.
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Our own research—that of Homburg, Jensen, and Hahn—as well as research by Hinterhuber and still other works by Liozu, repeatedly indicated firms that engage sales, marketing finance, and pricing leaders in pricing decisions outperform those that don’t. At this point, we may even call this settled managerial science.
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