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Amazon Chapter 10 Study Guide

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SUMMARY OF CH.10
Pricing strategies:
Price: is an amount of money that the consumer is paying for a product or a service.
Costumer value-based pricing: to determine the price of product or service we have to consider the customer expectations of the value not the seller’s cost.
Good-value pricing means the balance between good quality and service, decent price for both the customer and the company in order for it to gain profit. It also means, the marketer cannot make a decision in the marketing program before the product design and the prices are set. Value-added pricing: is the pricing plan which depends on expected values for the consumer. Rather than matching other competitors pricing, the strategy is to add an extra piece to the …show more content…

Amazon is spread throughout many countries such as U.S.A., France, China, Australia, Japan, Canada, Spain, Mexico, Brazil, and India. Amazon started as retail by selling books online. Now Amazon sells everything like electronics, jewelry, clothes, shoes, games, toys, books, cosmetics and they have their own products like the Amazon speaker and kindle for instance. Amazon offers a service called Amazon prime, which is an annual membership program that include free shipping streaming of movies and TV episodes. Overall, the company focuses on a vast selection, lowest prices, and outstanding customer experience by providing easy-to-use functionality, fast and reliable fulfillment, and timely customer service. For example, key features of Amazon’s retail websites include personalized recommendations, customer reviews, secure payment mechanisms, detailed product information, wedding and baby registries, customer wish lists, and content preview of many books. On top of that, through its Merchant and Amazon Marketplace programs, the company allows third-party sellers to offer their products on Amazon’s retail websites or on their own websites, and to fulfill orders through Amazon’s fulfillment service. In doing so, the company earns either fixed fees, revenue share fees, or per-unit activity fees. Jeff Bezos has 5 brilliant strategies for Amazon empire, one is to be like the godfather: make them an offer they can’t refuse. Two, don’t give up information unless absolutely necessary. Three, keep teams small enough that members can be fed with two pizzas. Four, stop talking so much. Five, get

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