Price
Select an organization that has changed its prices for its product or service. Research the topic and discuss the following questions:
· What caused the organization to change its prices? Was dynamic pricing used?
· What were the results of the price change?
· How might the concept of value versus price play into the organization's decision to adjust its pricing?
The main reason behind Amazon’s price changes was to ensure fair competition among its vast network of third-party sellers. The new rates would give all vendors an equal playing field when it comes to selling on their platform while also ensuring better customer service by charging higher fees for delivery options such as one-day or two-day priority shipping services. Additionally, the increased revenue generated by these new fees allowed Amazon to invest back into their products and services in order to remain competitive in the online marketplace.
The results of this price change have been largely positive for both customers and vendors alike. Customers are now able to get faster deliveries at more reasonable prices than before and vendors are seeing an increase in overall sales due to more people being exposed to their items through Amazon’s expansive reach into markets around the world. Furthermore, since dynamic pricing was used by setting different fees based on various criteria (e.g., delivery speed), companies were able respond quickly with minimal disruption compared to traditional fixed rate structures that require lengthy negotiations between parties involved.
Conceptually speaking, value versus price plays a huge role here because most customers want quality products delivered at a reasonable cost without sacrificing convenience or time; if they can find that combination then it becomes easier for them to make decisions when shopping online with confidence knowing they won't be taken advantage of financially due factors like inflated prices or hidden fees buried within contracts agreements or other fine print jargon typically associated with sales transactions involving multiple entities from different backgrounds.. Meanwhile, this same concept applies similarly towards companies because amazon is incentivizing businesses who provide exceptional customer service experiences via quick deliveries/pickups etc so there's greater value attached compared just offering low priced goods which may not even meet buyer expectations resulting either lost sales opportunities/returned merchandise & wasted resources respectively (time & money). Ultimately though despite whatever decision gets made both buyers & sellers need understand importance positioning product(s) correctly given current market conditions so everyone can benefit mutually longterm - because if done right outcome should reflect fair profit margins based off amount effort invested while still remaining profitable lest risk losing out potential consumers altogether due unacceptable levels risk associated w/investment itself whether directly related financial means or otherwise