Samenvatting

Summary IT Economics van Leo Van Hove - Deel 4/6

Name: IT Economics van Leo Van Hove - Deel 4/6
SKU: doc_4509215
Rating: 4.00 (1 reviews)
Author: fadia

1 beoordeling

21 keer bekeken 1 keer verkocht

Instelling
Vrije Universiteit Brussel (VUB)

IT Economics van Leo Van Hove - Deel 4/6 Chapter 3 : Pricing of Information Goods

[Meer zien]

Voorbeeld 4 van de 34 pagina's

Bekijk voorbeeld

Geupload op 15 februari 2024
Aantal pagina's 34
Geschreven in 2023/2024
Type Samenvatting

it economics
cursus
pricing of information goods

1 beoordeling

Door: bilal20 • 2 weken geleden

Volgen

fadia Lid sinds 3 jaar 34 documenten verkocht

€6,49

Ook beschikbaar in voordeelbundel v.a. €20,49

Toegevoegd

In winkelwagen Op verlanglijstje

100% tevredenheidsgarantie
Direct beschikbaar na betaling
Zowel online als in PDF
Je zit nergens aan vast

Ook beschikbaar in voordeelbundel (1)

IT Economics van Leo Van Hove - Volledige Ad verbatum HOC

€ 36,43 € 20,49 6 items

1. Samenvatting - It economics van leo van hove - deel 1/6
2. Samenvatting - It economics van leo van hove - deel 3/6
3. Samenvatting - It economics van leo van hove - deel 4/6
4. Samenvatting - It economics van leo van hove - deel 5/6
5. Samenvatting - It economics van leo van hove - deel 6/6
6. College aantekeningen - It economics van leo van hove - deel 2/6
Meer zien

Chapter 3 : Pricing of information goods
Intro : examples & rationale behind price discrimination
Examples
Personalised content
Personal recommendations based on
previous purchases. This is true for e-
commerce, streaming services,
Youtube.
If it is so easy to alter information or
products we see, it should be easy to
alter prices based on track-record seen
the received information about my
willingness to pay. The possibility to engage in price discrimination via the internet are much larger
than in physical market.
Personalised Prices ? (2000)

Tailor-made Prices… (2000)

Mostly travel sector were using this technique. Mostly first visitors received discount.
This strategy can be risky seen long-term customers may feel disappointed when they see this.
When website see that you visit them several times but do not make a purchase, they can see this
as a sign of high price sensitivity (that you are comparing websites for prices)
The idea is also to ask more to people who are less price sensitive.
Fadia Farhat | VUB 2023-2024 53

,This is on an individual level, where they charge a different price for the same product to different
customers
On a group level, website use price discrimination between bargain hunters and big spenders.
Amazon Spoiled it..
Around 2000, Amazon was doing price
discrimination on an individual level.
Disadvantage for suppliers on internet is that
there is a high transparency.
Public backlash forced them to compensate
the customers that they have overcharged.
This case showed that the risks for such strategy
was increasing.

Amazon said that this was an experiment.

10 Years later… (2012)
Software is based on cookies that reveal
where else you have been browsing,
what also gives a good guess on
people’s age, gender, family
composition, income,..
IP -> physical address -> the richer the
neighbourhood, who deeper the
pocket.
They also look at the type of computer (Apple (richer) versus Windows)
Behaviour can be an indicator : When you are fast to click, you will not receive a discount.
The travel sector.. The Ghost of Amazon..

Above two slides explain who use this strategy and why.
This is from the perspective of the supplier. But there is also the perspective of the client:
2016
Customers can also play the game act in a way to
receive reduced offers.

Fadia Farhat | VUB 2023-2024 54

,Price discrimination?
Personal experience of Professor Leo Van Hove.
He has work at Amsterdam and needed to buy many times tickets from Thalys.
He had an early voucher of 11.25 € for delay that happened on a trip before.

He had a last-minute meeting and went online to buy a ticket. The only option was a ticket at 160
€ . He wanted to use his voucher, so he goes back.

Surprise: he can now book a ticket for 58 € . Also the screen he got to see is different.
The fact that he entered the site via the voucher can be an indication for the site that he is price
sensitive. This can be an exemple of price discrimination. (He cannot proof it)

And here is the travel sector again..
Some practices of price discrimination are not legal.
See the case of Europcar, Hertz, Avis

Fadia Farhat | VUB 2023-2024 55

, Europcar, Hertz, Avis,..

Germans receive higher prices because of their residence outside UK. Discrimination on base of
residence is not allowed in the EU.
Company has different website within EU. Immediate rerouting, unable to buy products who are
cheaper on another website in another country. This is “borderline” of legal.
Data!
Unprecedented data gathering goes
hand in hand with the provision of online
services has a number of remarkable
consequences: it facilitates price
discrimination at a fine-grained individual
level.

An argument is made that politicians
should look harder at these big
companies and their growing abilities to
price discrimination.
In China, there has been more
regulations. The China market regulator
has taken a major step towards limiting a
bit the monopolistic power of the tech
giants in China. Beijin remarked that “Tactics by e-commerce companies are not leading to a
healthy development of the retail industry”.

Rationale behind price discrimination
From company perspective :
First reason is related to the cost structure.
Price-based strategy and pricing
according to MC is not a good idea seen
MC = (almost) 0.
Value-based strategy is better. Customize
products and then personalise the price
according to your value creation and
capture.

Fadia Farhat | VUB 2023-2024 56

Voordelen van het kopen van samenvattingen bij Stuvia op een rij:

√ Verzekerd van kwaliteit door reviews

Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!

Snel en makkelijk kopen

Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.

Focus op de essentie

Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.