MKT 300 Lecture Notes - Lecture 7: Starbucks, Bomb Disposal, Price Drop
Document Summary
Outline: relationship marketing, customer value, pricing strategies. Last week, we discussed relationship marketing and customer lifetime value, with metrics that help us determine and classify customers, based on their value to the company. In essence, we"re diving into factors that can directly impact the level of customer lifetime value. Both deal with pricing, but are pretty simplistic. Price = cost / (1-margin%) = . Examples: printers (printer: ; ink cartridge: !, discount flights, razors, video game consoles, console manufacturers lose money for every console they sell upwards of per unit. Value stems from perceived benefits of one option over another (i. e. castrol high-end oil vs regular oil, regular vacuum vs dyson vacuum: several factors impact value, operation cost vs. purchase price, maintenance requirements, convenience, additional products required. Price elasticity group of consumers) is to a change in price. Price elasticity: how sensitive a consumer (or: price elastic : small $ bigger demand, price inelastic : small $ smaller demand.
