ajaz_eco_204_2012_2013_chapter_16_Market_Power

Deploying a new generation of algorithms retailers

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Unformatted text preview: guide shoppers to promotions on items within eyeshot or in the next aisle. The smart carts also have the ability to cross-reference special offers with personal data. But companies must proceed with caution when experimenting with pricing strategies, to avoid seeming too intrusive or to discriminate unfairly against certain customers. Amazon.com learned that the hard way last ye ar, when its move to offer some customers a deeper discount on DVDs than others erupted into a public relations nightmare.The ideal strategy? To capture the value of the product or service for a particular customer or customer segment. "There are opportunities to do this in a way that doesn't put the brand at risk and still get the insight," says McKinsey's Zawada. In these profit-pinched times, the bigger risk may be doing nothing at all. Coming Soon: Toilet Paper Priced Like Airline Tickets th Wall Street Journal, September 5 , 2012 By J ULIA ANGW IN and D ANA MATTIOLI It used to be only airfares t...
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This document was uploaded on 01/19/2014.

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