Chapter 1, Problem 6.2EC

According to Nielsen, more than 50 percent of mobile phone consumers own smartphones. Many ofthem use free Wi-Fi when available for faster connections and to reduce data usage charges. Buteven when they don’t log on to Wi-Fi, the device continues to search, giving information on users’locations. By using the signals emitted by shoppers’ smartphones, retailers can keep tabs onshoppers, knowing where they are and what they are searching for on their phones’ browsers.Retailers can learn on which aisles shoppers are most likely to check online prices at retailers such asAmazon.com and can send an alert to a sales representative. “Heat mapping” identifies trafficpatterns and locations attracting the greatest number of shoppers checking the Internet. This givesretailers an idea of the products most vulnerable to “showrooming”—the practice of shoppersvisiting stores to learn about and try products and later purchasing them for less online.1. What is shopper marketing and how might retailers…

If consumers are willing to wait weeks or months forthe latest iPhone, why does Apple need to worryabout producing enough phones to meet immediatedemand?

George Castilla willingly paid $499 for an Android phone on the day it hit the market, even though it was far more expensive than the cell phones he had bought in the past. He wasn't concerned about the price as he wanted to be one of the first on campus to have this product. Consumers like George are the target of firms using skimming pricing strategies. a) True () b) False