Question

online pricing and offline pricing policies of e-bikes for a company. justify any difference

Answer 1

Online pricing has less to do with space-based constraints than offline pricing, in the sense that the company can accept a backorder in the case the real inventory does not currently hold the desired quantity, but the same cannot be said for an offline location where the customers would usually go for their current requirement. The fact that online listings can help the company save a large amount of overhead in terms of actual storage space that can be utilized just to showcase samples of the best predicts means that they can be priced comparatively lower in this case. The pricing for online products is also lower because of the fact that if the individuals are willing to come to the retailer, means that they might have an immediate need that would still need to be fulfilled even with higher pricing. From marketing point of view, while both an online and offline store might have the same budget and considerations, the fact that online marketing would have a comp[aratively higher reach and a lower cost of conversion as well as higher numbers of available platforms make its simpler form the company to even stick with the most basic promotions. We can also add that physical store locations have lower sales compared to the same products online because of a similar space restraint. Only individuals living in the same area as the store would be willing to make the journey to go and select the product and therein lies the biggest argument for reduced pricing online when compared to offline products.

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