This document contains summaries of three articles on the topic of scarcity and pricing power:
1. It summarizes an article about a Starbucks location that enjoys pricing power due to its scarce prime location at a Washington DC metro station. High prices are due to both scarcity and the large rent paid for the location.
2. It summarizes Ricardo's theory of rent, which argues that bargaining power comes from scarcity of land and shifts between landowners and buyers based on availability of resources and regulations.
3. It summarizes ways that companies can exploit scarcity through various pricing strategies like differential pricing targeted at individuals or groups, and tricks to make customers self-incriminate as less price sensitive.
If every deal did indeed always come down to the question of who had the lowest price, then ask yourself this: Why doesn’t the company with the lowest price get the sale every time?
If every deal did indeed always come down to the question of who had the lowest price, then ask yourself this: Why doesn’t the company with the lowest price get the sale every time?
Price dominates shoppers' buying decisions - making it critical for retailers to get prices right from the start. Today, pricing has moved from an art to a science - compelling retailers to manage it as a dedicated, technology-driven area of their business.
Class ISOL536-Security Architecture and Design Assignment We.docxmccormicknadine86
Class: ISOL536-Security Architecture and Design
Assignment: Week 3 Group Discussion 3
Length: Minimum of 400 words
Students will be required to create 1 new thread, and provide substantive comments on at least 3 threads created by other students. Make sure to explain and backup your responses with facts and examples. This assignment should be in APA format and have to include at least two references.
Since we know that this particular instance of the AppMaker implements a customer-facing store that processes financial transactions, how does that influence which threat agents may be interested in attacking it?
Primary Reference for Terms and Concepts
Marketing. (13th ed.) by Roger A. Kerin (Author), Steven W. Hartley (Author) New York: McGraw-Hill/Irwin. ISBN:9781259573545
Five Environmental Forces;
Social, Economic, Technological, Competitive, Regulatory
Four P’s of Marketing;
Price, Product, Place, Promotion
SWOT Analysis;
Strengths, Weaknesses, Opportunities, Threats
Brand Equity;
Resides in the minds of the consumers and results from what they have felt, seen, and heard about a brand overtime
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing’s two primary goals are a) discovering the needs of prospective customers and b) satisfying them. Achieving these two goals also involves the four marketing mix factors largely controlled by the organization and the five environmental forces that are general outside its control. Marketing affects all individuals, all organizations, all industries and all countries.
Target Market - a particular group of consumers at which a product or service is aimed.
Points of difference in a product – superior characteristics that deliver unique benefits sufficient enough to motivate a change in consumption behavior.
Intangibility of services – services can’t be held, touched or seen before the purchase decision.
Types of pricing –
1. Prestige pricing – for consumers who perceive price as an indication of quality or prestige; price Different types of advertising –
a. Product advertising –
i. Comparative – shows one brand’s strengths relative to those of competitors; requires market research to back up legal support for claims.
ii. Competitive (or persuasive) – promotes a specific brand’s features and benefits in a effort to persuade the target market to select the target market to select a firm’s brand rather than a competitor
Running Head: DRAFT TOPIC PAPER 2 1
Draft Topic Paper 2
Principles of Marketing BUSB340
Elissa Cope
January 22, 2020
University of Redlands
BUSB485 SD12
Undergraduate Capstone Paper
Instructor Richard Doyle
DRAFT TOPIC PAPER 2 2
Principles of Marketing Topic Paper
In this paper, I will speak on Brigantine as a company and explain its marke ...
• 3. We’ll cover...1 Right and wrong ways to pick a price2 The two stages of pricing3 7 rules to give your pricing the edge
• 4. Price has a MASSIVE impact on your business.
• 5. Bad Methods for Pricing
• 6. 1. Product cost + X% You’ll undercharge some customers and overcharge others.
• 7. 2. What does the customer want to pay? People have no idea until you ask them for their credit card.
• 8. Pricing by Value
• 9. Value-Based Pricing Your customers get value worth $Y and it only costs them $X.
• 10. Why does this work? People cannot perceive absolute value, only comparative value.
• 11. Some value is easy to calculate...
• 12. Other value isn’t...
• 13. Pricing - Stage 1 1
• 14. Stage 1 is all about the unknown. Customers don’t understand your product and you don’t understand your customers.
• 15. This is before product/market fit.
• 16. The price you pick won’t be the best.
• 17. Your goal = prove that the product can be sold.
• 18. Pricing - Stage 2 2
• 19. This is your growth stage.
• 20. Time to optimize your price. You’ll need a deep understanding for how your customers use your product.
• 21. Interview your customers
• 22. The ideal price is... Just high enough to need consideration but low enough to still provide plenty of value.
• 23. What if you have different customer segments?
• 24. Separate segments with features. Price sensitive customers get limited plans, value sensitive customers get the VIP plan.
• 25. For this to be successful... You need to talk to your customers and understand the benefits they need the most.
• 26. Capture the full value from each customer type.
• 27. Bidsketch Case Study - Old Pricing
• 28. Bidsketch Case Study - New Pricing
• 29. Bidsketch Case Study - Results1 Doubled average revenue per customer2 Only a slight drop in conversions3 No impact on churn Google “bidsketch pricing post”
• 30. Seven Rules for Pricing 7
• 31. Rule 1: End with a 9 $39 or $37?
• 32. Rule 2: Make Your Price Short $1,000.00 or $1000?
• 33. Rule 3: Anchor Your Price 1 That product is $100, this is only $10 2 Was $150, now only $80 3 Value of $1500, selling for only $150
• 34. Rule 4: Offer Multiple Prices
• 35. Rule 5: Double your Price People tend to UNDERvalue their services.
• 36. Rule 6: Be Careful With Freemium Plans Very difficult to make it work outside of mass markets.
• 37. Rule 7: Grandfather Old Customers In As long as you don’t raise prices for old customers, you won’t get any complaints.
• 38. These are rules, not laws.
• 39. Your 3 Tools for Getting It Done
• 40. 1. The Customer Interview
• 41. 2. A/B Testing
• 42. 3. Customer Analytics
• 43. KISSmetrics helps you find the right price 1 Know who to interview 2 Get A/B results from your whole funnel 3 Track WHO’s doing what
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
Price dominates shoppers' buying decisions - making it critical for retailers to get prices right from the start. Today, pricing has moved from an art to a science - compelling retailers to manage it as a dedicated, technology-driven area of their business.
Class ISOL536-Security Architecture and Design Assignment We.docxmccormicknadine86
Class: ISOL536-Security Architecture and Design
Assignment: Week 3 Group Discussion 3
Length: Minimum of 400 words
Students will be required to create 1 new thread, and provide substantive comments on at least 3 threads created by other students. Make sure to explain and backup your responses with facts and examples. This assignment should be in APA format and have to include at least two references.
Since we know that this particular instance of the AppMaker implements a customer-facing store that processes financial transactions, how does that influence which threat agents may be interested in attacking it?
Primary Reference for Terms and Concepts
Marketing. (13th ed.) by Roger A. Kerin (Author), Steven W. Hartley (Author) New York: McGraw-Hill/Irwin. ISBN:9781259573545
Five Environmental Forces;
Social, Economic, Technological, Competitive, Regulatory
Four P’s of Marketing;
Price, Product, Place, Promotion
SWOT Analysis;
Strengths, Weaknesses, Opportunities, Threats
Brand Equity;
Resides in the minds of the consumers and results from what they have felt, seen, and heard about a brand overtime
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing’s two primary goals are a) discovering the needs of prospective customers and b) satisfying them. Achieving these two goals also involves the four marketing mix factors largely controlled by the organization and the five environmental forces that are general outside its control. Marketing affects all individuals, all organizations, all industries and all countries.
Target Market - a particular group of consumers at which a product or service is aimed.
Points of difference in a product – superior characteristics that deliver unique benefits sufficient enough to motivate a change in consumption behavior.
Intangibility of services – services can’t be held, touched or seen before the purchase decision.
Types of pricing –
1. Prestige pricing – for consumers who perceive price as an indication of quality or prestige; price Different types of advertising –
a. Product advertising –
i. Comparative – shows one brand’s strengths relative to those of competitors; requires market research to back up legal support for claims.
ii. Competitive (or persuasive) – promotes a specific brand’s features and benefits in a effort to persuade the target market to select the target market to select a firm’s brand rather than a competitor
Running Head: DRAFT TOPIC PAPER 2 1
Draft Topic Paper 2
Principles of Marketing BUSB340
Elissa Cope
January 22, 2020
University of Redlands
BUSB485 SD12
Undergraduate Capstone Paper
Instructor Richard Doyle
DRAFT TOPIC PAPER 2 2
Principles of Marketing Topic Paper
In this paper, I will speak on Brigantine as a company and explain its marke ...
• 3. We’ll cover...1 Right and wrong ways to pick a price2 The two stages of pricing3 7 rules to give your pricing the edge
• 4. Price has a MASSIVE impact on your business.
• 5. Bad Methods for Pricing
• 6. 1. Product cost + X% You’ll undercharge some customers and overcharge others.
• 7. 2. What does the customer want to pay? People have no idea until you ask them for their credit card.
• 8. Pricing by Value
• 9. Value-Based Pricing Your customers get value worth $Y and it only costs them $X.
• 10. Why does this work? People cannot perceive absolute value, only comparative value.
• 11. Some value is easy to calculate...
• 12. Other value isn’t...
• 13. Pricing - Stage 1 1
• 14. Stage 1 is all about the unknown. Customers don’t understand your product and you don’t understand your customers.
• 15. This is before product/market fit.
• 16. The price you pick won’t be the best.
• 17. Your goal = prove that the product can be sold.
• 18. Pricing - Stage 2 2
• 19. This is your growth stage.
• 20. Time to optimize your price. You’ll need a deep understanding for how your customers use your product.
• 21. Interview your customers
• 22. The ideal price is... Just high enough to need consideration but low enough to still provide plenty of value.
• 23. What if you have different customer segments?
• 24. Separate segments with features. Price sensitive customers get limited plans, value sensitive customers get the VIP plan.
• 25. For this to be successful... You need to talk to your customers and understand the benefits they need the most.
• 26. Capture the full value from each customer type.
• 27. Bidsketch Case Study - Old Pricing
• 28. Bidsketch Case Study - New Pricing
• 29. Bidsketch Case Study - Results1 Doubled average revenue per customer2 Only a slight drop in conversions3 No impact on churn Google “bidsketch pricing post”
• 30. Seven Rules for Pricing 7
• 31. Rule 1: End with a 9 $39 or $37?
• 32. Rule 2: Make Your Price Short $1,000.00 or $1000?
• 33. Rule 3: Anchor Your Price 1 That product is $100, this is only $10 2 Was $150, now only $80 3 Value of $1500, selling for only $150
• 34. Rule 4: Offer Multiple Prices
• 35. Rule 5: Double your Price People tend to UNDERvalue their services.
• 36. Rule 6: Be Careful With Freemium Plans Very difficult to make it work outside of mass markets.
• 37. Rule 7: Grandfather Old Customers In As long as you don’t raise prices for old customers, you won’t get any complaints.
• 38. These are rules, not laws.
• 39. Your 3 Tools for Getting It Done
• 40. 1. The Customer Interview
• 41. 2. A/B Testing
• 42. 3. Customer Analytics
• 43. KISSmetrics helps you find the right price 1 Know who to interview 2 Get A/B results from your whole funnel 3 Track WHO’s doing what
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the what'sapp contact of my personal pi vendor
+12349014282
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the what'sapp contact of my personal pi merchant to trade with.
+12349014282
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just what'sapp this number below. I sold about 3000 pi coins to him and he paid me immediately.
+12349014282
2. Who Pays for Your Coffee?
Examples to study the strength of scarcity of resources in
markets and the subsequent bargaining power held by the
certain resource owners
Bargaining power is correlated to the scarcity, and if the
scarcity shifts so does the bargaining power, as it doesn't come
solely by ownership
Ricardo’s model which expounds on the concepts of scarcity,
bargaining power and the shifts in bargaining power. It also
explains the concept of relative value pricing and marginal land
3. Who Pays for Your Coffee?
Starbucks, Farragut West
Located at a very prime location, at the station exit near to
International Sqaure, Washington DC
It expereinces a huge volume of commuters, being the
only coffee cafe in the station
They enjoy the scarcity and charge exorbitant prices for
their coffee, which is paid happily by the consumers
The scarcity isnt the only factor behind high prices, the
huge rent paid to the landlord for the prime location
4. Who Pays for Your Coffee?
Ricardian Theory of Rent
Rent of land arises due to the differences in the fertility
or situation of the different plots of land
Looks at the supply of land from the standpoint of the
society as a whole
There is perfect competition in the market for land
No consideration of the various alternative uses to
which land can be put
David Ricardo, a Classical Economist, developed a theory
of rent in 1817
His definition: That portion of the produce of the earth
which is paid to the landlord for the use of the original and
indestructible powers of the soil.
Assumptions of the Theory:
1.
2.
3.
4.
5. Who Pays for Your Coffee?
Ricardo's Theory, Meadows & Owners
With the examples of medows and landowners, we
observe that the bargaining power comes through scarcity
The relative bargaining power shifts between the buyers
and the land owners, based on factors like natural
availability of resources and the regulations
The shifts in bargaining power is also a factor of 'Marginal'
land, and it is because of this marginal land that owners
can enjoy the power of relative pricing
6. Who Pays for Your Coffee?
Ricardian Graphs and Model
Here, AD, DG and GJ are three separate plots of land of
the same size, but of difference in fertility. The total
produce of AD is ABCD, that of DG is DEFG and that of GJ
is GHIJ. The first and second plots of land generate a
surplus shows by the shaded area, which represents the rent
of the first two plots of land. Since the third plot GJ has no
surplus it is marginal land or no-rent land. Grade 4 (below-
marginal) land will not be cultivated, because rent is
negative.
7. What Supermarkets don't
want you to know?
How can companies exploit scarcity?
Tim Harford talks about two attractions spots in London - The
London Eye and the Millennium Dome - and how differently the
scarcity power was exploited.
To further elaborate on what or how companies can exploit this
scarcity he talks about the example Costa Coffee in London.
To attract more customers, CC could either increase prices or
reduce prices drastically and try to increase sales. But this isn't
very feasible for very obvious reasons.
The most ideal situation - differential pricing - is it possible? Yes.
That is what we will look at further.
8. What Supermarkets don't
want you to know?
First Degree Price Discrimination or
Unique Target Strategy
1.
Here, each customer is individually evaluated and charged at
whatever price they are willing to pay. Ex:- Used by car
salesmen, real estate agents.
It is time consuming, but nowadays, companies are trying to
automate the process by using "discount cards" in physical
supermarkets and "cookies" in online platforms.
Comapnies use this data to customise prices tailormade for
each individual customer.
9. What Supermarkets don't
want you to know?
AMAZON
Amazon, like other online websites, uses "Cookies" to identify
and track customer data
They used these records to offer "Money On" Vouchers: two
readers buying exactly the same book would be offered a
different price based on tendencies shown in previous
purchases
Customers realised that if they deleted cookies from their
devices, they were offered lower prices and this caused an
outcry, forcing Amazon to promise not to use this strategy
10. What Supermarkets don't
want you to know?
2. Group Target Strategy
This is a less objected to strategy, where companies offer different
prices to members of different groups. Ex:- Lower pricing for the
aged in comparison to adults
This model makes more sense and is easier to implement because
it is seen that certain groups that usually pay more, are ones that
can afford it
This strategy is more socially acceptable when compared to
Individual targeting. It also brings to light the concept of Price
sensitivity and how different groups react to change in price
11. What Supermarkets don't
want you to know?
DISNEY WORLD, FLORIDA
Disney World offers discounts of over 50% for the locals. This is
not because the locals cannot afford the tickets, but because they
are more price sensitive than tourists.
If price of the tickets were increased, locals were more likely to
skip a day of visiting the park which they might have otherwise
visited. If prices were lowered, locals might make multiple visits
which tourists will not be able to.
While it is assumed that the rich are price insensitive, this strategy
indicates that it is not always like that. Scarcity and repeat visits
are important criteria to look at as well.
12. What Supermarkets don't
want you to know?
3. Self-Incrimination Strategy
This is a common strategy where companies convince customers
to confess that they aren't sensitive to price. They achieve this by
offering products in different quantities, with different features, or
even in different locations.
The reason why this strategy is successful is because it is not
inherently obvious to the eye of a common consumer. They do
not know if the additional price is a price targeting strategy or just
due to added costs.
For example, coffee shops charge a similar premium whether you
have a large cappuccino in the café or take it away.
13. What Supermarkets don't
want you to know?
POPCORN & WINE
Popcorn in movie theatres and wine in a restaurant are often very
expensive, yet are still in demand.
This is not only due to the scarcity power that theatres and
restaurants hold, but also because of the price sensitivity of the
customers.
For example, those who are insensitive to the price will end up
not buying any popcorn, but if someone is on a date, will buy the
product irrespective of the price.
Similarly, those eating a long meal ona special occasion will buy
expensive wine and even the relatively expensive appetizers and
desserts.
14. What Supermarkets don't
want you to know?
Reality Checks for Companies
Companies need to be wary of "leaks".
Leak #1: Making customers price insensitive
The possibility of the rich customers preferring cheaper products
is very high. Therefore, it is the company's duty to intentionally
sabotage the cheaper product to make the costlier product more
viable.
Leak #2: Leakage between groups
Customers who are being offered a discount might buy the
product and sell it at a profit to those who are being offered a
higher price.
15. What Supermarkets don't
want you to know?
Price Targeting: Good or Bad?
Price Targeting can be beneficial for companies in certain
situations. ex:- Pharma Companies' differential pricing for diferent
demographics
It can also be a lose-lose situation sometimes: In airline and railway
industries, the group price-targeting strategy is inefficient because
it takes seats away from customers who are willing to pay more,
and gives them to customers who are willing to pay less
In many conditions, Price Targeting strategies can be both
efficient and inefficient.