-Relationships : between firm and custom
-Pricing
-Communication
Intellectual relationship: sale based on product attributes
Emotional relationship: based on how the product makes you feel
The long standing buyer-seller relationship might lead the customer to:
-anticipate the positive feelings from remaining loyal to the seller
-trust that the seller will provide good value
- feel that the brand represents who they are
-promote the seller to friends, family and acquaintances
Pricing-Inernet: mysimon.com, auction- dynamic pricing
Pricing based on
-cost plus
-competitive pricing
-demand pricing
-less leader
-every day low price
-luxury/prestige
- frenzy pricing ex: stub hub and ebay > efficient market :$200 ticket, if the artist charged this amount there would be resentment to the artist, therefore the tickets go to other sellers and they take the resentment from consumers
ex: ebay “buyit now” option: psychologically you would prefer to take the risk out of the equation and lock in that price and you’re guarenteed the product
-dynamic pricing is one of th most significant contributions the internet and the 21s have made to pricing strategy
- the internet has enhanced dynamic pricing in two ways: decreased menu costs, interactivity
catalog: price-(hits, lack of hits, supply, out of stock) menu
Auction types
-english auctions> reverse-price english auction-free markets
-dutch auctions
-first price sealed-bid auctions
-reverse first price sealed-bid auctions
-group buying
-exchanges