Chapter 11 Flashcards
Internet of things
Refers to electronic devices that are able to connect to the internet and share data
Impacts from Internet of things
- How we interact w/ our homes
- safer automobiles
- better fitness and health
Short-term pricing strategies
Penetration approach
Skimming approach
Penetration approach
Begin w/ a low price to keep out competition
Skimming approach
Start w/ a high price to yield Early profits
Long-term pricing strategies
Cost-based pricing
Demand based pricing
Target costing
Prestige pricing
Cost based pricing
Determine the cost of making a product out ther set a price by adding a profit to the cost
Demand based pricing
Set the price based on what the company thinks consumers will pay
Target costing
Determine how much consumers are willing to pay and then subtract a reasonable profit from price to determine amount that can be spent on product
Prestige pricing
Set price artificially high to capitalize on the association between high price and quality
Dynamic pricing
Price of an item fluctuates frequently basset on complicated algorithms
Revenue optimization system
Type of dynamic pricing that uses analytics software to demand forecasting and automatically updates prices
Supply chain improvements
Wireless technology
RFID tags to trace products and generate data
Product marketing
Focuses on selling a product to a specific demographic by using a traditional approach
Content marketing
Intended to attract potential buyers by building a strong brand reputation through online content
