ajaz_eco_204_2012_2013_chapter_16_Market_Power

Most people think of low price but its also about

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: idual customers. The result? Shipping revenues are up this year by at least 10 percent, Adinew says. Ford Motor Co., meanwhile, also is reaping benefits. According to a McKinsey study, Ford expects its digital pricing strategy to significantly improve the yield from the nearly $10 billion it spends annually on promotional pricing. Historically, discount financing and cash-back offers were broadly offered to every customer over a given period of time. The Net, though, is enabling Ford to better track individual customer behavior, and let the company more finely target tailored promotions to specific groups of people. "Differentiating price to target various groups is hard to do offline because visitors to a physical store are a statistical mystery," says McKinsey's Zawada. Online, though, once a customer's segment is identified, a segment-specific price or promotion can be offered immediately, online and off. But it's not simply about cutting prices to move products. It's also about pricing your products to reflect their different values to different customer gr...
View Full Document

Ask a homework question - tutors are online