1. “Personalized pricing” is a one-to-one marketing strategy. With the ubiquitous nature of Internet and the large amount of personalized data that can be extracted from the consumer behavior (clickstream, search query), it is very easy for a seller to personalize a products as per the consumer and also personalize its pricing. Where the traditional sellers fail to attract price-sensitive customers because of the single-price, now same retailers can adjust the price dynamically as per its customers. Thus, seller can differentiate the pricings as per the willingness of the customer to pay. Personalized pricing also helps the estimate the market demand. It is very easy to use promotions on Internet and see how it alters the market demand.
2. Bundling creates “economics of aggregation” for the digital goods. Digital goods have low marginal cost (i.e. fixed cost of production but cheap to reproduce and distribute). These characteristics promote bundling strategy to result in …show more content…
The new NYT Paywall introduced in 2011 gave limited free access to unsubscribed users and added device-specific paid subscription. This new paywall surprisingly created more revenue for NYT. Possible reasons for this are: o Ad revenue: The paid subscribers to NYT now will be avid readers. These readers are heavy users and are likely to spend more time on the site. Also, with digital access it becomes easier to collect customer information. The advertisers can use this information to launch a targeted ad campaign, which in turn increases their revenue. Thus prospect of increasing ad revenue will make the advertisers pay premium to NYT. o Seamless experience and accessibility: NYT invested in mobile infrastructure focusing on user experience. Thus, the NYT app users never face any annoying experience (example of repeated logging in). Also, with digital apps, users could access the news anywhere anytime. This increase in accessibility attracts additional users and hence boosts the
2. Bundling creates “economics of aggregation” for the digital goods. Digital goods have low marginal cost (i.e. fixed cost of production but cheap to reproduce and distribute). These characteristics promote bundling strategy to result in …show more content…
The new NYT Paywall introduced in 2011 gave limited free access to unsubscribed users and added device-specific paid subscription. This new paywall surprisingly created more revenue for NYT. Possible reasons for this are: o Ad revenue: The paid subscribers to NYT now will be avid readers. These readers are heavy users and are likely to spend more time on the site. Also, with digital access it becomes easier to collect customer information. The advertisers can use this information to launch a targeted ad campaign, which in turn increases their revenue. Thus prospect of increasing ad revenue will make the advertisers pay premium to NYT. o Seamless experience and accessibility: NYT invested in mobile infrastructure focusing on user experience. Thus, the NYT app users never face any annoying experience (example of repeated logging in). Also, with digital apps, users could access the news anywhere anytime. This increase in accessibility attracts additional users and hence boosts the