Internet Marketing
In terms of pricing many marketers fear the Internet because of theperceived negative impact on pricing. As search costs are reduced forconsumers to locate the lowest price available for goods and services,markets become even more efficient and customers have more power in settingprice. However, despite these concerns, there is also significantopportunity for savvy professionals that leverage marketing fundamentals to
In summary, the Internet is not necessarily the death of a company'sability to make a profit. The Internet facilitates one-to-one marketing whichenables mass price differentiation. In commoditized situations, price will be lower. And, a host of other factors on the Internet contribute to its abilityto price discriminate. In turn, customers may bewilling to pay more in a highly personalized shopping environment. Using this information, a company can use its Web site to differentiate thebuying experience for each individual customer. But, even here the goal should be to maximize revenue, not price usingdynamic pricing models. At anygiven point in time, vendors can automatically adjust prices to reflectpricing variables such as inventory levels, increased demand and marketconditions. Nothing is more suited to dynamic pricing models than the Internet. The Internet also presents significantopportunities for one-to-one marketing with satisfied customers that arewilling to pay a premium for a better experience. First, the Internet offers significant opportunities for pricediscrimination through the realization that products and services offerdifferent values to different customers at different points in time. In other words, dynamic pricing models mean that companies canbetter cope with excess capacity, changes in customer preferences and otherfactors that affect buying behavior. This is because it'seasier to collect details on the customer's preferences on the Internet.
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Acceptance Essays
