Innovative Pricing Strategies to Increase Profits, livre ebook

According to the economic theory of the firm, businesses strive to determine the single price that maximizes profits. In fact, many firms can extract more revenue and increase profits with pricing strategies that are far more innovative than the single-price strategy. However, in the world of pricing, there is no “one size fits all” strategy.

Some pricing strategies are better suited to some situations than others. Sam’s Club, owned by Walmart Stores, Inc., for example, charge a membership fee for the right to purchase the store’s inventory whereas Walmart Supercenters do not. If Suddenlink Communications bundles Internet, cable, and phone service to increase profits, why does it also sell the same items separately? Is it true that passengers seated next to each other on the same flight might pay dramatically different fares?

Inside you’ll learn how various pricing strategies, including price discrimination, two-part tariffs, bundling, peak-load pricing, and dynamic pricing need specific and necessary ingredients in order to succeed. The author shows you how to use microeconomic theory to determine which pricing strategies will succeed, and under what conditions.

List of Cases/Firms/Products (p. ix)
Part I If You Could Choose Any Price, What Would It Be? Fundamentals for the Single Price Firm (p. 1)
Chapter 1 Economics and the Business Manager (p. 3)
Chapter 2 Consumer Behavior: The Law of Demand and its Effect on Pricing (p. 11)
Chapter 3 Understanding the Price Sensitivity of Buyers (p. 23)
Chapter 4 One Perfect Price: Profit Maximization for the Single Price Firm (p. 37)
Part II Different Strokes for Different Folks: Charging More Than One Price for the Same Good (p. 43)
Chapter 5 If You Could Read My Mind: First-Degree Price Discrimination Strategies (p. 45)
Chapter 6 Allowing Buyers to Self-Select By Willingness to Pay: Second-Degree Price Discrimination Strategies (p. 57)
Chapter 7 Segmenting Your Market Based on Willingness to Pay: Third-Degree Price Discrimination Strategies (p. 95)
Part III How Does My E-Tailer Know that I Read Comic Books and Cook with a Wok? Pricing in the Digital Age (p. 101)
Chapter 8 Dynamic Pricing and E-Commerce (p. 103)
Chapter 9 Legal and Ethical Issues (p. 121)
Table of Strategies (p. 131)
Appendix: Relevant Published Case Studies (p. 135)
Notes (p. 137)
References (p. 141)
Index (p. 145)