Introduction to Marketing

Incremental innovation (VW Golf 4 => Golf 5)

Market breakthrough (Selfie-sticks)

Technological break through (Seagway)

Radical innovation (www)

• Data

• Attention

• Network value

• Co-production

• Word-of-mouth

• (future) transactions or revenues

1. Cost based pricing: Product => Costs => Price => Value => Customers
2. Value-based pricing: Customers => Value => Price => Costs => Product
3. competition-base pricing

Skimming: Price starts at high levels an then decreases (eg. iPhone)

Penetration: Price starts at low level an then increases (eg. Adobe)

First degree: Individual price for each customer, Price equals each customer‘s willingness to pay, Perfect price discrimination with skimming the whole consumer‘s, surplus.

Second degree: Individual price for different customer segments, but customer decides in which segment he is (eg. SBB 1/2-Tax)

Third degree: Individual price for different customer segments, customer can not decide in which segment he is (Mensa)

1. Acquire the preference scores of products
2. Compute the average score for each attribute level (eg. 9+2+4=5 for 1GB, 1+4=2.5 for 10GB): \(AS_k= \frac {\sum U_i}{| M_K|}\)
3. Compute the part worh for each attribute level (normalize to [0,1]) \(PW_k=\frac{AS_k-minAS} {maxAS-minAS}\) max and min AS of ALL average scores!
4. Compute raw importance for each attribute \(RI_j=maxPW-minPW\) = span of the attribute level (eg. for data volume we have max 0.57 and min 0.27 => RI = 0.3
5. Compute the relative importance for each attribute: \(PI_j=\frac {RI_j}{\sum RI_p}\cdot 100percent\)