REMAINING PART OF LECTURE 5
,PROMOTIONS
Benefits:
Effective price discrimination
Power of product experience
Drawbacks:
• Decreased brand loyalty
• Increased brand switching
Price discrimination: different price on website
versus apps or different target groups see different
prices. For instance: Student price versus normal
price.
Price promotion: not necessarily lowering the
price, but you are making it more accessible; can
be price, can be products for free
Decreasing brand loyalty: decreasing reference price after promotion, not willing to pay premium
price anymore
, Loyal segment:
Price promotion have negative effect on price sensitivity
Non price-promotion have positive effect on price sensitivity
Non-loyal segment:
Price promotion have negative effect on price sensitivity
Non price-promotion have negative effect on price sensitivity
Price promotion we will likely reduce price, response will be more quantity sold.
,PROMOTIONS
Benefits:
Effective price discrimination
Power of product experience
Drawbacks:
• Decreased brand loyalty
• Increased brand switching
Price discrimination: different price on website
versus apps or different target groups see different
prices. For instance: Student price versus normal
price.
Price promotion: not necessarily lowering the
price, but you are making it more accessible; can
be price, can be products for free
Decreasing brand loyalty: decreasing reference price after promotion, not willing to pay premium
price anymore
, Loyal segment:
Price promotion have negative effect on price sensitivity
Non price-promotion have positive effect on price sensitivity
Non-loyal segment:
Price promotion have negative effect on price sensitivity
Non price-promotion have negative effect on price sensitivity
Price promotion we will likely reduce price, response will be more quantity sold.
