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Unformatted text preview: Tyler Clark Prof. Benson 1/13/11 Coca-Cola’s new vending machine creating a potential price war Coca-Cola’s new vending machine will be able to change the prices automatically according to a number of factors: temperature, traffic, demand, and hours of the day all in all t rying to capitalize on price discrimination. The suggestion of implementing the new machines must look at the potential profit but also the potential risk. While it is t rue that price discrimination in a common practice with airlines and is increasing as the access to information about consumers becomes more and more accessible, it does create a negative image with the customers and a potential back lash. Looking at the two positions I believe implementing the machine currently would negatively affect them. Initially such a move would cause a dent in the Coca Colas image and potentially could affect consumers demand for the product. There is also the risk of consumers switching over to the substitute product of Pepsi that according to their spokesman Jeff Brown is poised to monopolize on...
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This note was uploaded on 04/01/2011 for the course MANEC 387 taught by Professor Crawford,l during the Spring '08 term at BYU.
- Spring '08