Firms associated with E-commerce firms and their clients have embraced that dynamic pricing is a favorite internet shopping.This is to some extend ironical because dynamic pricing essentially practiced price discrimination …
Download file to see previous pages
The advantaged groups are the internet savvy because they can manipulate algorithms that sensitize them to be price sensitive, therefore the dynamic pricing may set lower prices for them. Dynamic pricing is very advantageous as it allows sellers to use large amounts of information that directly assist them to make decision (Hartline 85). The seller therefore makes informed business decisions. The seller is also able to increase the price within the threshold of the buyer’s upper limit because of the availability of the historical data to the buyer. This makes the seller increase the profit margins. The fixed pricing is less advantageous compared to the dynamic pricing, as the price of commodities is inflexible to meet the changing demands. The sellers are not in position to maximize profits in case of buffer seasons. The dynamic pricing has limitations. For example if the potential buyer proves the track record of price sensitivity and becomes well informed of the product’s market price, he may force the dynamic pricing to offer better deal. The critical information about the buyer considered by the sellers like current inventory, supply chains, and competitors’ pricing may affect the price charged to the buyer as at that time. This incidence makes the seller realize no very little or no profits (Hartline 158). A firm practicing dynamic pricing program may sometimes offer discounts to grouped purchases due to excess inventory hence benefitting the buyer more. Dynamic pricing may make upcoming or infant business deteriorate or become insolvent due to increased unhealthy on-line competition from the established businesses. Consortia e-marketplaces These are electronic market places differentiated from other configurations. They mainly focus on the provisions of the internal efficiencies and collaborative benefits of supply to chain members (Rendell 214). Consortium e-marketplaces have many accrued benefits for the organizations that use its services. The market future for the consortia e marketplaces is to influence other organization to join the service. The benefits of participating in consortia e-marketplaces are distinct for buyers and the suppliers (Adrian 189). It improves operational efficiency for the, managerial efficacy, and strategic effectiveness for both the buyer and the supplier of any organization which is deeply integrated in its services. Therefore, it is considerably wise to endorse my organization to this service to obtain the international competition. To evaluate the exchange validity of the consortia e-market place I would analyze critically its function and analyze the operational strategy. Consortia e-marketplaces are joint ventures that operate independently from their producers and have a completely different operation with an independent CEO and management board. The consortia e-marketplace emerges typically in vertical supply chain where such situations like the purchasing side consolidates for dominant players and community supply has fragmentation or is unreliable (Adrian 289). In this situation, the consortia e-marketplace intervenes and become the reliable source for the community products. The consortia e-market place also may emerge where the existing supplier sources products from a small company. The consortia CEO selects a new market place and contracts the market for the existing supplier. This analysis shows the importance my organization may accrue for joining the consortia e-marketplaces. Enterprise resource planning ERP is a method of using computer to link the various functions like accounting, inventory control and the entire company. This method intends
...Download file to see next pagesRead More
Stock options have a minimum amount of 100 shares to be delivered by the seller (writer) to the buyer (holder) in the contract. Securities on the other hand, are sold in cash thus settlement is reached. If an option is held longer than the specified time, it reaches the point of the expiration when the holder does not exercise his rights.
This paper will discuss different economic approaches for Aslan communications’ price setting, and identify factors that may limit the firm’s choice in pricing decisions. The economic approaches consider elements such as demand, elasticity, cost, oligopolistic behaviour, market structure, product differentiation, and innovation management while setting price for a product.
The choice of a pricing method to be adopted largely depends on the nature of the product and the targeted market structure and composition. The available methods include the cost based method which involves the price determination based on the cost of production.
The Black-Scholes model and the binomial model are the most commonly used option pricing models. These theories have errors because their options are derived from assets. For instance in a company’s stock, time does affect the theories because the process of calculating option pricing takes a long time or is done after several years (Coval, 2001).
Restaurants frequently offer kids free nights, and senior citizen discounts often get ‘Early bird specials.’ ‘Channel pricing’ is the practice of charging separate prices for an identical product, as determined by the channel through which it is sold.
The agony is attributed to the fact that there are numerous variables and factors to be considered before arriving at a pricing decision. The underlying five articles seek to substantiate the efficacy of certain practical models used in actual context as tools for making pricing decisions.
There are many factors that can be used to determine the price of a commodity which all depends on the most prevalent factor that is used in a marketing system. Price is the quantity payment that is given in exchange for something. Through this may have a different social meaning, it is used for monetary value in economics.
According to the report pricing strategy is the task of the top management with the help of middle level and low level management. This is done by analyzing the local and the international market, clear method of analyzing the conditions where a successful marketing can be carried out. Pricing is the process of influential decision.
The fixed-price contracts EPA would thus be the most suitable alternatives for small business enterprises with contracting capacity because this would cushion them from adverse economic conditions.
The fixed-price contracts EPA allow for
The knowledge of pricing policy to apply is essential not only to the firms who are the producers of various goods and services but also to the consumers in many ways. More often than not, after establishing the basis for company prices, managers always develop pricing strategies by looking at the pricing goals that the company strives.
1 Pages(250 words)Coursework
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Advantages of dynamic pricing over fixed pricing"
with a personal 20% discount.