Pricing - McGraw-Hill Introduction to Business

23andMe Struggles to Turn Customers Into Subscribers

October 15, 2024

Since the discovery of DNA’s structure in the 1950s, scientists have predicted a future where doctors could analyze a patient’s genes to identify and even prevent certain diseases. The medical industry seemed to be moving closer to that goal in 2007 when 23andMe became the first company to release a direct-to-consumer genetic test. Named for the 23 pairs of chromosomes in human DNA, 23andMe analyzed saliva samples from customers to show their ancestry and predispositions to diseases like cancer and Continue reading →

Product Development, Marketing, Pricing, Ethics, Startups, Entrepreneurship, Product Distribution, Subscriptions, Genetics

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, Bonus Chapter B: Technology and New Media

Cash-Strapped Customers Lead to Declining Sales at Dollar Stores

September 10, 2024

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Dollar stores are famous for low prices. Even when economic times get tough, discount retailers usually continue to do well because they draw customers looking to pay less than they would in a typical store. But that’s changing as customers have less money to spend, and now dollar stores are struggling to stay in business. For instance, Family Dollar recently announced it will close 1,000 stores over the next several years while 99 Cents Only filed for bankruptcy this year Continue reading →

Entrepreneurship, Pricing, Product Distribution, Supply & Demand, Inflation, Product Development, Marketing, Promotions

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, 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

[VIDEO] How Duolingo Makes Money with Few Paying Customers

August 16, 2024

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For most of the past decade, the language learning app Duolingo has ranked as the top education platform on Apple’s App Store. Most people download it for free, with only a small percentage of users opting to pay for a yearly subscription. So how does Duolingo manage to earn more than $500 million in annual revenue? Along with examining the roles that advertising and AI play in Duolingo’s success, the video below also explains how the app keeps its dedicated Continue reading →

Marketing, Global, Entrepreneurship, Product Development, Social Media, Pricing, Duolingo, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media, Videos

Amazon Earns $14.2 Billion in Sales on Prime Day

July 26, 2024

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Retailers once considered July to be a slow month as regular customers spent their money on travel and other activities rather than shopping at local stores. Then Amazon created Prime Day, a 48-hour sales event that turned the middle of July into a bonanza of consumer cash for the e-commerce giant. This past Prime Day was Amazon’s biggest yet, with the company racking up $14.2 billion in sales over the course of two days last week, an 11 percent increase Continue reading →

Inflation, Prime Day, Promotions, Retail, Pricing, Marketing, Amazon, E-commerce, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Consumers Start to Steer Clear of Expensive Snacks

July 19, 2024

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From grocery stores to fast food drive-throughs, today’s consumers pay a lot more for food than they did just a little while ago. In the years following the pandemic, food and beverage companies steadily increased prices to compensate for soaring commodity and labor costs and to please investors looking to boost profit margins. For example, the average price for a bag of potato chips in June 2020 was $5.09. These days, though, that same bag of chips goes for Continue reading →

Product Development, Branding, Marketing, Promotions, Ethics, Pricing, Product Distribution, Supply & Demand, Shrinkflation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] American Brands Lose Market Share to Locals in China

July 17, 2024

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China has long been a lucrative market for American companies looking to win over the country’s more than 1 billion consumers. But while brands like Nike and Starbucks have thrived in China for decades, their age of dominance could be coming to an end thanks to a new wave of domestically owned firms. The video below explores how companies like Anta and Luckin Coffee are appealing to younger consumers who seem less interested in Western products than past generations.

Questions: Continue reading →

Global, China, Entrepreneurship, Product Distribution, Product Development, Branding, Marketing, Pricing

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

Fourth of July Cookouts Could Cost More this Year

July 2, 2024

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In a few days, millions of Americans will ignite their grills and barbecue up a storm in a grand Independence Day tradition enjoyed from coast to coast. Thanks to inflation, though, this year’s celebrations may be pricier than in years past. While Fourth of July favorites like hot dogs and potato salad remain affordable, prices for items like ground beef, pork chops, and lemonade have risen dramatically.

According to the American Farm Bureau Federation (AFBF), an average cookout for 10 Continue reading →

Pricing, Product Distribution, Agriculture, Marketing, Holidays, Operations Management, Food & Drink, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

Cash-Strapped Consumers Label Fast Food as a Luxury

June 5, 2024

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The fast food industry has long depended on affordability as one of its key selling points, offering customers quick meals that are easy on their wallets. Those days might be in the past, however, as inflation and other factors have sent fast food prices soaring in recent years. According to Finance Buzz, average prices at the country’s most popular chains have increased by as much as 100 percent over the last decade. The 31 percent rise in inflation over the Continue reading →

Pricing, Fast food, Product Distribution, Marketing, Food & Drink, Supply & Demand, Inflation, Promotions

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] How Endless Shrimp Almost Sank Red Lobster

May 10, 2024

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In the late 1990s, the seafood chain Red Lobster was one of the fastest growing restaurants in the nation as it earned billions of dollars in annual revenue from more than 700 locations. As the years went by, though, poorly planned promotions and wider economic factors took their toll on the company. This video looks at how the pandemic and an endless shrimp promotion brought Red Lobster to the brink of bankruptcy.

Questions:

How did Red Lobster’s endless shrimp promotion Continue reading →

Supply & Demand, Inflation, Pandemic, Marketing, Product Development, Social Media, Promotions, Pricing, Product Distribution, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Major Credit Card Firms Agree to Cap Swipe Fees

April 3, 2024

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Credit card firms provide both consumers and businesses with a convenient way to handle payments that eliminates the need to deal with large amounts of cash all the time. Still, this service doesn’t come for free: not only can customers rack up large amounts of interest on their credit card bills, companies also must pay a fee for every transaction they make. These “swipe fees” can add up quickly. Last year alone, U.S. merchants paid $101 billion in swipe fees Continue reading →

Legal, Ethics, Product Distribution, Entrepreneurship, Credit Cards, Payments, Product developments, Pricing, Regulation

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