Kahnemen's Business Model

Traditionally, independent dealerships utilize a far more centralized approach to customer-level decision-making. These ‘mom-and-pop’ dealerships acquired by Cervus were successfully converted from a ‘command-and-control’ style of management.

In the case of Stephanie Riesling, you can see the consumer go through the five steps of the consumer decision process as she goes through the journey of purchasing a new car. Stephanie is a senior about to graduate college, in the consumer decision making process, she is about to embark in a life stage change. This leads her to recognize her need for a new car. The next phase of the process was information search, she was not sure what car she wanted to purchase, but knew she needed something that was nice looking, in her price range and was known to last a long time. She narrowed her car search down to a consideration set of four vehicles. She did a lot of external searches for information, using non-marketing sources. She used personal sources from acquaintances and independent sources like consumer reports. She has a high involvement in the determination of information search, since this was an expensive purchase for herself. The consumer final reaches the third step of the process and had the it narrowed down to one car brand, but had alternative things to consider, like features on the car and the color of the car. She had an evaluation criterion that she set of things that must be on the car and the rest was negotiable depending on cost. Based on the case it sounds like the consumer

As a consumer, we all get frustrated when we think a listed price is “too high” whether it is a necessity, and we have to buy it, or we just really want it. Some of the largest complaints by consumers today are directed towards the cost of goods. Marketing research has shown us that the costs of some items are being intentionally raised based on aspects of the individual who is making the purchase. The manipulation of prices can be broken down into three main issues: price fixing, price gouging, and price discrimination. Are there any positive or beneficial reasons to do this? Yes and no, the following paragraphs provide information about each practice individually.

The text "Out of Control", by Kevin Kelly, is an exciting description of the future as seen by the author, a journalist and optimistic technologist. The predictions presented must certainly be taken as entertaining reading that are intended to inspire visions of the future. The predictions of Kelly have already proven to be inaccurate in the four years since publication. The most glaring example of this is electronic commerce. Canada is quickly becoming a leader in electronic commerce, through online banking and direct payment purchases. The coming cashless society presents several opportunities and problems that were not previously available in the paper money world.

The next payment model is one that offers fiscal incentives to providers. The financial incentives are often received by both the physician and hospital. This is called the pay for performance concept. The initial motivation for this shared risk contracting payment model is to advance compliance with standards of care. This payment model also aims to improve health outcomes and safety of patients (Kongstvedt, 2013).

According to Berenson (2010), this payment model is considered to be the dominant payment model, with a representation of over 90% of primary care revenue. Although the use of this payment model has been problematic for primary care, many physicians who make use of the fee-for-service system have been greatly rewarded. The problems associated with fee-for-service are not only felt in the United States, but by doctors from around the globe. Such problems encountered by physicians have led to the reduction of quality care in the services provided. Compensation is based on the number and complexity of procedures the specialist performs.

The case study name Target is Trying to Overcome the Problem of “Showrooming” indicates that Target vendors have little choice but to “play ball” and create special products to shield them from price comparisons (Kinicki & Williams, 2013). This demand from Target could have much more ethical ramifications and possible fallout from the vendors. Target’s use of the Individual Approach may not be the solution for the long run.

When the shopper denies this outrageous proposal, the merchant then draws attention to a more reasonably-priced product. S/he hopes the consumer will feel guilty about their prior rejection and will thus agree to their new alleged compromise (Taylor, Peplau, & Sears, 2006).

“Price discrimination exists when two similar products which have the same marginal cost to produce are sold by a firm at different prices. This sort of practice is highly controversial in terms of its impact on both consumers and rivals” (Price Discrimination, 2006, p.1). There are many ways to accomplish these sort of conditions because the transactions surely need not be simultaneous; indeed, there is temporal discrimination, such as between Sunday rates and week, day rates, matinee and evening prices, peak rates and off-peak rates, season and off-season prices. To sell different qualities or products with different marginal cost at the same price, or to buy different qualities or factors of different efficiency at the same price, is also discriminatory.

Buyers are often able to negotiate prices 60 percent less than competitors’ prices for comparable merchandise. For the most part, shoppers only care about the cash flowing out of their pockets more than anything. I say that because, consumers are just trying to purchase merchandise to better themselves, not others.

The automobile may cost $100,000, and if some customers perceive the particular price to be reasonable price for the automobile, they will purchase it based on their perception and not because of the fact that marketers set the price of the automobile as $100,000. Same customer may feel that $30,000 for different automobile is too expensive even though he or she felt that $100,000 for the automobile was reasonable for them because they perceive each products differently. Kotler and Keller (2012) also mentioned that customer are less sensitive to price of the product when they believe that 1) there are not too many similar products in the market that can replace the quality of the given product; 2) the high price of the product can be justified; 3) stated price of the product is just a small cost of obtaining unique product for the life time.

Since the late nineties, there has been a growing sector of online companies that sell merchandise or other products, known as e-tailers. This growing market, as a result, has driven demand for another type of company that is able to safely and securely process payments and business transactions between buyers and sellers. The growth in the online industry has spurred all types of opportunities for payment service providers like PayPal. There are a variety of competitors that have entered the market, such as Amazon payments and Stripe. However, PayPal has used it’s first-mover advantage and this has allowed them to make their service synonymous with online purchases and payment processing. This brand name and reputation alone has given them the ability to position themselves in the market in order to sustain their business long term. This paper will focus on how the idea of PayPal was developed, grew into a massive e-business with over 179 million active users, and changed the way people pay online.

There are so many ways of paying for products and services by using the internet. Any method in which would work better for you there is a suitable way of paying for the product online or there will be soon. I examined some of the most popular online payment options and I chose the ones that are used the most and can be more useful to consumers.

ProPay is a payment processing provider founded by Bradley Wilkes in 1997 with their current headquarters located in Lehi, Utah. ProPay offers a variety of merchant payment

On the other hand, companies may use the lower price, because they only had lower value for their consumers compare with other companies. And the Value can be in many types in different areas and different faces, such as the quality of service, the power of brand…etc. For example, the Mercedes-Benz can match the social status of the customers, the customers also have brand loyalty, and they think that drive Mercedes-Benz is a kind of way to show their wealth. Therefore, the customers may accept the higher price.