Chapter 14: Product and Price - McGraw-Hill Introduction to Business

[VIDEO] The Environmental Cost of Free Two-Day Shipping

December 1, 2017

During the upcoming holiday season, analysts estimate shoppers will spend more than $100 billion online. The majority of these purchases will likely be made on Amazon, which has attracted millions of loyal customers over the years through perks like free two-day shipping. But while undoubtedly convenient, quick shipping is far from environmentally sustainable. This video outlines the problem while also offering a few potential solutions.

Questions:

How does Amazon’s free two-day shipping program cause more trucks to end up on Continue reading →

Product Distribution, Shipping, Promotions, Retail, Operations Management, Transportation, Amazon, Sustainability

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media, Videos

Shoppers Spend $6.6 Billion on Cyber Monday

November 28, 2017

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Last week we took a look at how analysts were lowering their expectations for Black Friday, which is traditionally the country’s biggest annual shopping event. While retailers managed to generate about $5 billion in sales on the day, this year’s take was decidedly lower than in years past. In some cases store traffic was non-existent, leading at least one newscaster to vent their frustrations about the poor turnout on air. But while some brick-and-mortar stores stayed empty, Continue reading →

Retail, Pricing, Black Friday, E-commerce, Promotion, Cyber Monday

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

U.K. Court Rules Uber Must Classify Drivers as Workers

November 17, 2017

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Since Uber’s founding in 2009, the ride-hailing service has relied on tens of thousands of drivers that it considers to be independent contractors. Although this policy has been controversial from the start, executives claim it is a vital component of the company’s historic growth rate. After all, the money that Uber saves from paying employment benefits allows it to charge lower fares. That explanation simply isn’t good enough for many critics, however, who claim the company is depriving drivers of Continue reading →

Transportation, Startups, Uber, Legal, U.K., Global, Ethics, Product Development, Labor Relations, Regulation

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter A: Business Law

Retailers Lower Expectations for Black Friday

November 16, 2017

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For decades Black Friday has served as the country’s symbolic start to the holiday shopping season. Each year local news teams honor the event by turning their cameras onto the post-Thanksgiving crowds who gather in front of stores and wait patiently for the doors to swing open. Once inside, some deal-seeking shoppers frantically seek out products before anyone else can get to them, occasionally leading to arguments or even fights.

Of course, this perspective on Black Friday may be more Continue reading →

Retail, China, Black Friday, Marketing, Singles Day, Global, Promotion

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

Using Entrepreneurship to Reduce Food Waste

November 14, 2017

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Each year American restaurants and supermarkets throw away $57 billion worth of food due to spoilage or lack of demand. An additional $15 billion in foodstuffs never even leaves farms, often because the crops are either damaged or simply too ugly to sell. Although companies try to donate as much unsold inventory as possible, the scale of the problem is far larger than the industry can currently handle.

That’s where startups like Spoiler Alert and FoodMaven come in. These Continue reading →

Startups, Marketing, Product Distribution, Entrepreneurship, Agriculture, Food, Waste, Supermarkets

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

Tiffany and Co. Unveils New Line of Expensive “Everyday Objects”

November 7, 2017

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Even though November has just begun, stores across the country are already starting to roll out the tinsel and turn on the carols in preparation for the Christmas shopping season. So as the retail world gets into the yuletide spirit, you may as well do the same and start thinking about what sort of gifts your family and friends would like to receive this year. Perhaps they’re the kind of people who would enjoy spinning a silver-plated yoyo? Or maybe Continue reading →

Tiffany, Product Development, Branding, Retail, Pricing, Luxury

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

Lawsuits Accuse LuLaRoe of Running a Pyramid Scheme

October 27, 2017

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Since its founding in 2012, the women’s apparel seller LuLaRoe has grown into a powerful brand despite never stocking its clothes in stores. Instead, the company directly sells items to a team of independent consultants who find customers on their own. These representatives can eventually receive bonuses if they find new consultants to recruit, thus expanding the number of LuLaRoe sellers as well as customers. If you ask executives at the company, this direct selling strategy fits the mold Continue reading →

LuLaRoe, Clothing, Legal, Ethics, Product Distribution, Multi-Level Marketing

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter A: Business Law

Chipotle Encounters Setbacks on Its Road to Recovery

October 26, 2017

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In 2015 the popular burrito chain Chipotle faced a crisis so large that some wondered if the company would ever recover. Towards the end of the year, stories about norovirus outbreaks originating from Chipotle restaurants became national news. People were shocked to learn how this supposedly safe and sustainable place to eat had poisoned hundreds of people with tainted produce. Soon Chipotle’s stock price dropped and its sales plummeted, leading many in the company to worry that its reputation Continue reading →

Product Development, Branding, Chipotle, Management, Natural Disasters, Ethics, Food

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 13: Marketing, Chapter 14: Product and Price, Uncategorized

Northern California’s Wineries Face Uncertainty after Wildfires

October 24, 2017

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For the last few weeks wildfires have ravaged the northern portion of California, claiming dozens of lives and destroying at least 5,700 buildings. This catastrophic state of affairs is a far cry from the sunny paradise that many imagine when they think of wine country. In fact, October and November are usually the region’s busiest months as tourists arrive by the busload to sample vintages and enjoy the countryside. Not this year, though: one winery owner said she’s already Continue reading →

Product Development, Tourism, Marketing, California, Operations Management, Natural Disasters, Food, Wildfires, Wine

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

[VIDEO] Welcome to Mcity, the Fake Town for Cars

October 13, 2017

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This light and breezy video takes you to Mcity, a tiny town that serves as the test track for the University of Michigan’s autonomous vehicle research program. Engineers observe closely as self-driving cars learn how to avoid pedestrians and navigate through obstacles in a realistic setting.

Questions:

What is the benefit of testing products like autonomous vehicles in controlled but realistic settings?
Do you think self-driving cars will become a common sight on the road within a few years?

Product Testing, Product Development, Innovation, Automation, Self-Driving Cars, Michigan

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 14: Product and Price, Bonus Chapter B: Technology and New Media, Videos