ajaz_eco_204_2012_2013_chapter_16_Market_Power

And profitlogic that promise to help companies reap

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: the Internet, the company can analyze a prospective credit card customer and make them an offer in less than 30 seconds. That has helped the company gain some 2.5 million online accounts and add 43 million customers since 1995 — 10 million last year alone. Capital One's earnings grew 30 percent in 2001 when m ost companies were struggling to achieve flat results. To be sure, Capital One is on the cutting edge of the fledgling pricing revolution. True one -to-one marketing, where companies can tailor prices and promotions and configure products for specific cust omers at specific times, is still a long way off for most firms. But it's clear that companies married to a conventional view of pricing —a sticker price that doesn't change in response to market conditions or business goals —could be at a distinct disadvantage down the line. Says the Pricing Society's Mitchell: "Everyone's done everything they can on the cost side to ride the recession; now they're looking at the top line." The growing interest...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online