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PRESENTED BY:Group 3
INTR ODU CTI ON
INVE NTED BY:DR.JO HN PE MBE RTON ON 1886
KNOWL EDGE OF THE CAS E
Ceo M.D OUGLA S IVE STE R co nsid ered W EATHE R SENS ING VE ND ING MACHINE . Aim to ra ise PROFIT le ve l Contro ve rsy aro use beca use of
It is setting of different prices for different customers, but for same products and services. In this case, price increases with increase in temperature or PRICE is directly proportional to the temperature.
FOR P RO DUCER
Advantages:level Raise the current profit
Disadvantages:Danger of losing market share Danger of losing loyal customers
CUST OMER REAC TIONS
For:• Most of the wealthy people will buy it without standing in lines. • People in colder countries are
Against :• It contradicts law of demand. • Price varies with the temperature. • By increasing price people can change their preference from coca-cola to other brands . • Desire is fulfilled by paying more. • People will be able to afford only in critical situations.
CUSTOME R PE RCEI VED VALU E
Customer benefit:• • • •
Product benefit Service benefits Personal benefits Image benefits Monetary cost Psychological cost
Customer cost:• •
PLEASE SELECT ..
1. Do you prefer to have a soft drink? i)Yes ii)No iii)Sometimes 2. Which brand of soft drink do you prefer? i)Pepsi Co ii)Coca-cola iii)Other(specify)_____________ 3. Do you prefer to drink in i)Can ii)Pet iii)300ml bottle iv)Other(specify)_______________ 4. If given price of a can of
5. If a weather-sensing vending machine has been set up in KSOM campus will you prefer to have your drink *i-lounge *vending machine *outside the campus 5.Will you wait for the vending machine to lower its price when climate condition is cold? i)Yes ii)No
Sugges tio ns
• Weather sensing vending machine should geographically restricted to areas where goods are less price elastic.
• The weather sensing vending machine technology should not be implemented.