Question
In: Accounting
MAR3802 Discussion Question Several different pricing models can be found on the Internet. Each model appeals...
MAR3802
Discussion Question
Several different pricing models can be found on the Internet. Each model appeals to different consumer groups. Select one product that can be found on both Ebay and Amazon.
- What pricing options are available?
- Is there more than one price available? If so, what are those prices?
- Do you believe that everyone will choose the least expensive option? Why or why not?
- Are there variations in the product itself?
- If you were purchasing this product, which one would you choose and why?
Solutions
Expert Solution
ANSWER:
Some students may have purchased this book from one of these sites, but the question asks them to examine the price differences more closely and in an analytical sense
http://www.eBay.com offers two pricing options, bid and buy now. The current bid for a copy of this book is $20.51. The “buy now” price is $39.99. Not everyone will choose the least expensive option, because some will consider the reputation of the buyer or be worried about the condition of the book (e.g., new or used). Amazon lists a wide variety of prices that refer to both new and used textbooks. The prices range from $54.70 for a new book to $19.99 for a used book sourced from another retailer. I would be more inclined to buy another copy of this textbook from Amazon, because it consistently has the product available, either through its own distribution network or from used dealers, whereas there is less of a guarantee that eBay.com will always have another copy in the condition I want.
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