Price

1
Price

• What is price ?
• Money
• Data exchanged
• advertisements

2
Early Internet

• Land grab strategy price below marginal cost
• Gain first mover advantage and acquire lock-in

3
Price Transparency

• Use of search and shopping bots to compare prices
• Prices tend to marginal cost ?
• Generate brand loyalty
• Create lock-in

4
Price point of Free

• Advertising supported content, software w/
  adware
• Cost structure zero marginal cost
• Free now, pay later w/ lock-in (Skype)

5
Price Opaqueness

• Price discrimination Amazon example
• Coupons Dealcatcher
• Different product offerings in different
  countries

6
Dynamic Pricing

• Traditional pricing systems
• Auction pricing
• Traditional
• Reverse auctions
• Lifecycle management

7
And finally

• Channel conflict ? Online versus offline pricing
• Product bundling and pricing
• Payment systems paypal
• Micropayments future ?
• Online payments for traditional services