StudentShare solutions
Triangle menu

Improving Decision Making - Essay Example

Nobody downloaded yet
The company's defence that the price was part of a "random price test" and could be refunded solidified the suspicion further it was into dynamic pricing activity, as similar instances were far too many. Just like the company offered $51 less by Amazon than its own usual price on a dedicated bargain website (ramasastry,
An analysis can be done from figures provided as quarter wise sales data, of a particular book sold through this portal, (Niles, R., It shows that the company had skimmed high earnings through a dynamic pricing policy in the first quarter sales. Eleven and twelve copies of the same book were sold at the prices of $11.02 and $11.50 each respectively while in the second quarter the same book sold sixteen and eleven copies each at the prices of $11.02 and $11.70 respectively meaning a highly elastic nature of the book's demand can be computed at a elasticity demand- coefficient of two, which is greater than unitary. It may be noticed here that there was an increase in sales of the books even when the prices charged were higher. If total earnings based on variable pricing quarter - on - quarter are considered , then they range from 15% to almost as high as 40%. This is where the marketers like have the opportunity to maximize their earnings from unsuspecting customers through their dynamic pricing strategy as even against a higher price Amazon sold more number of copies. The remaining quarters also showed a similar effect.
Benefits & disadvantages
The benefits of dynamic pricing comprise of stimulating demand which helps to churn inventory quicker translating into more revenue and greater margins. The new focus is on target pricing, with technology profiling the price sensitivity of customers to determine the selection of groups which can be discriminated on pricing. . It is believed by the company to help in maximizing the total revenue for the company. The associates and partners of Amazon even share historical data of their dynamic pricing. (Liquid commerce, The disadvantages are also quite a few such as customer loyalty start disappearing once regular customers find out that they are being overcharged in contrast to a new customer offered a lower promotional price . This could drive customers to bargain counters where everyone is treated fairly and there is no discrimination through dynamic pricing. The other drawback of this method may be a legal threat incase it appears that the firm is violating antitrust laws or not having a fixed price policy.
However, it may be an end of an era of list prices where the product life cycle is short, (Strategic interactive marketing, managing, the distance minimized and delivery lead times lessened with the help of technology and modernization. Industry experts have reportedly observed dynamic pricing to be a boon to high fixed and low marginal cost industries and also as a necessity for e commerce (Weiss, R., M. & Mehrotra, A., K., ...Show more

Summary is a Fortune 500 worldwide company and a leader in online shopping. The portal carrying a diverse range of products, has been in the news not only for a successful e - commerce business model but also for a controversial revenue generation method called dynamic pricing (ramasastry, This form of pricing like discriminatory pricing or variable pricing is where the organization in question utilises internet technology tools like "cookies" and "click stream" tracking valuable data on a customer profile like purchasing patterns, financial resources etc to achieve a targeted revenue just like its feature for the customer to track their own browsing record (homepage, amazo…
Author : kennethkunze
Improving Decision Making
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Improving Decision Making"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Quantitative Decision Making
Decision analysis is an important business activity, which makes managers identify and assess important aspects of any specific decision. “In business, graphical representations of decisions are usually formally presented to decision makers and stakeholders along with prescribed courses of action” (Erika).
1 pages (250 words) Essay
Decision Making Tools
The Pareto Analysis makes use of the Pareto Principle that uses the idea that 80% of the advantages of doing any work are derived from doing just 20% of the work. When put in the context of quality improvement, the Pareto Principle argues that key causes (20%) bring about the majority of problems (80%).
12 pages (3000 words) Essay
Managing Decision Making
Decision making is a complex process that involves giving consideration to numerous factors and perspectives. If decision making as an individual action is difficult enough, it is all the more complicated when performed by a group. In our group, the four members Aleksandar Burneski (110064964), Rocco Guiducci (110065658), Kuir Alaak (100044490) and I Mossab Aljamdi (110079132) have different personality types and character traits.
4 pages (1000 words) Essay
Improving Decision Making, DB
If anything, their actions are similar to each other. However, it can also be refuted that the reason why people often answer not-so-confidently on these questions was the fact that nations or states are all capable of conducting such actions. That is, since the choice of states to be answered are limited only to the Soviet Union and the US, the questions cannot really accurately determine that indeed, people cannot determine the difference between Soviet and American political actions.
2 pages (500 words) Essay
Improving Decision Making Essay
According to the blind tests administered by the company, the sweeter taste of Pepsi is more preferred by customers. Even though Coca-Cola leads the industry in terms of market share, its competitor is substantially gaining control. During that period, supermarket sale of Pepsi is 2% higher than Coca-Cola.
2 pages (500 words) Essay
Improving Decision Making, DB
rt of the activity that created an impression on me was the rationale behind the query on the two questions, which showed how Soviet and American actions are not radically different from each other. If anything, their actions are similar to each other. However, it can also be
2 pages (500 words) Essay
Health Administarion
The reflective practices proved to be of great help to the employees. It helped them to accept change with more understanding as it was having significant impact on their work performance. The self assessment questionnaire facilitated the supervisors to assess their work
1 pages (250 words) Essay
Decision Making Assessment (Synthesis)
1) of the organization. Decision making process involves agreement between the decision maker and stakeholders regarding definition of the problem, requirements and
2 pages (500 words) Essay
Structured decision making
This is the main reason why it has been used over time by policy makers and managers overwhelmed by environmental, political, economic and social factors to maximize the success potential by overcoming such pitfalls. One of the benefits of using the process
1 pages (250 words) Essay
Decision-Making Model
Based on the difference in religion, the decisions of the parents are recognized to be different from each other related to the treatment of the child because the mother is a Christian Scientist and insisted that the child should be provided with treatment.
4 pages (1000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Improving Decision Making for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us