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Essay / Research Paper Abstract
Ecommerce has changed the dynamics of the commercial environment. This 16 page paper looks at the use of pricing strategy for a company selling services through the internet. The paper considers the way prices are set, and includes consideration of aggressive pricing, elasticity, reactions to competitors, the pressure caused by disintermediation and the potential of contingency pricing. The bibliography cites 12 sources.
Page Count:
16 pages (~225 words per page)
File: TS14_TEpricestgye.rtf
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Unformatted sample text from the term paper:
opens up many opportunities for buyers and sellers by reducing many of the traditional barriers to trade, such as geographical barriers and helping to overcome barriers created by the perception
of size. This is also a medium that can allow for a reduction in asymmetry of information regarding the products or services to be sold which may also benefit both
buyers and sellers. While there is the creation of increased opportunities there is an also increased level of competition that barriers would have reduced in the past. In a
traditional bricks and motor environment where products or services were sold the competition was limited to suppliers that were easily accessible, with the reduction of geographical barriers the suppliers may
now be widely spread and located not only in different areas, but ion different countries. For many goods and services sold ion the internet the medium is also more
transparent as it is easier to collect and compare prices, especially where goods or services sold are seen as heterogeneous. Tools such as differentiation are sought in the way the
goods or services are offered, but with this increased transparency there is an increased emphasis on price and pricing strategy. 2. Pricing Strategy The way in which a company
sets prices will need to take into account many different conditions. Where this is undertaken provocatively in order to try and either mange market conditions or activity manage the poison
of the company by taking into account marketing conditions in order to maximise revenue or profit this is known as pricing strategy (Nagle and Holden, 2001). This means that
a company needs to find the right balance between its own desire to make profit and the customers desire to get a good price for a product or service (Nagle
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