ideasarehere

December 11, 2009

Discount Outlet vs. Stock Exchange

Filed under: business,marketing — Erik Dobberkau @ 14:21

There are two models of dynamic pricing in the market: a. Discount Outlets like supermarkets offer commodities for cheap because they got hold of them for even cheaper. People rush in and grab what they can get. Price goes up, the rush breaks down. b. Stock Exchange works exactly the other way round: Price goes up, people are more likely to buy. Grab it while it’s hot. The buzz will attract more people. The industry example is (of course) Apple.

Thing is, for both of them there is no way any Human (or Econ) as of today would adapt their behaviour if they decided to price the other way round. So the question for you as a marketer is: What business are you in? Or rather: What kind of business does your customer associate your business (i.e. your brand, your products, your services) with?

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