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11-21 Will the plan proposed by current Coach leadership in North America Plummet as Market Share Erodes,” Reuters, Janu-
11-22 be successful in reversing the brand’s slide in market ary 22, 2014, http://in.reuters.com/article/2014/01/22/coach-results
share? Why or why not? -idINL3N0KW3V920140122; Ashley Lutz, “Coach Is Slipping Fast, and It
Can All Be Traced to One Major Mistake,” Business Insider, October 22,
What recommendations would you make to Coach? 2012, www.businessinsider.com/coach-is-losing-its-value-2012-10; and
additional information taken from www.coach.com/online/handbags/
Sources: Andrew Marder, “Coach, Inc. Can’t Get It Together,” Mot- genWCM-10551-10051-en-/Coach_US/CompanyInformation/Investor-
ley Fool, April 30, 2014, www.fool.com/investing/general/2014/04/ Relations/CompanyProfile, accessed May 2014.
30/coach-inc-cant-get-it-together.aspx; Phil Wahba, “Coach Sales
MyMarketingLab
Go to mymktlab.com for the following Assisted-graded writing questions:
11-23 Explain how businesses implement segmented pricing and discuss conditions
11-24 necessary for success. (AACSB: Communication; Reflective Thinking)
Any charge that is not airfare is referred to as ancillary revenue for airlines—
and they are cleaning up on it to the tune of $20 billion a year.While
consumers can avoid some fees, such as those for food, preferred seating, and
wi-fi, the majority can’t avoid baggage fees. What type of pricing strategies
are airlines using? Is it ethical for airlines to charge baggage fees? (AACSB:
Communication; Ethical Reasoning)
References 6. Example based on information from Duane Stanford, “Coke Engineers
Its Orange Juice—With an Algorithm,” Bloomberg Businessweek,
1. Based on information from Tom Gara, “When Elephants Fight: The January 31, 2013, www.businessweek.com/articles/2013-01-31/
Great Wal-Mart-Amazon War of 2013,” Wall Street Journal, March coke-engineers-its-orange-juice-with-an-algorithm#p2.
28, 2013, http://blogs.wsj.com/corporate-intelligence/2013/03/28/
when-elephants-fight-the-great-wal-mart-amazon-war-of-2013; 7. For this and other examples, see Peter Coy, “Why the Price Is Rarely
Farhad Manjoo, “Walmart’s Evolution from Big Box Giant to Right,” Bloomberg Businessweek, February 1 & 8, 2010, pp. 77–78.
E-Commerce Innovator,” Fast Company, November 26, 2012, www
.fastcompany.com/3002948/walmarts-evolution-big-box-giant- 8. See Anthony Allred, E. K. Valentin, and Goutam Chakraborty,
e-commerce-innovator; Shelly Banjo, “Walmart’s E-Stumble with “Pricing Risky Services: Preference and Quality Considerations,”
Amazon,” Wall Street Journal, June 19, 2013, http://online.wsj Journal of Product and Brand Management, Vol. 19, No. 1, 2010,
.com/news/articles/SB10001424127887323566804578553301 p. 54; Kenneth C. Manning and David E. Sprott, “Price Endings,
017702818; and www.walmart.com and www.amazon.com, ac- Left-Digit Effects, and Choice,” Journal of Consumer Research,
cessed September 2014. August 2009, pp. 328–336; Martin Lindstrom, “The Psychology be-
hind the Sweet Spots of Pricing,” Fast Company, March 27, 2012,
2. “Lower Cost Samsung GALAXY Unveiled in Kenya,” BiztechAfrica, www.fastcompany.com/1826172/psychology-behind-sweet-
May 23, 2014, www.biztechafrica.com/article/lower-cost-samsung- spots-pricing; and Travis Nichols, “A Penny Saved: Psychological
samsung-galaxy-unveiled-kenya/2967/#.Uvo4bfldV8F; Ed Suther- Pricing,” Gumroad, October 18, 2013, http://blog.gumroad.com/
land, “Apple vs Samsung Price War in India,” iDownloadBlog, April 17, post/64417917582/a-penny-saved-psychological-pricing.
2013, www.idownloadblog.com/2013/04/17/apple-samsung-india-
price-war/; Panjaj Mishra, “Apple Turns to Old iPhone Models, and Lower 9. See “Get Up To $100 Off Our Most Popular Tablets!” www.t-mobile
Prices, to Woo Users In India,” TechCrunch, January 17, 2014, http:// .com/landing/free-mobile-internet-data.html?cmpid=WTR_PB_vVD
techcrunch.com/2014/01/17/apple-turns-to-old-iphone-models- AYcs2&002=2201628&004=7544714199&005=39867426325&006
and-lower-prices-to-woo-users-in-india/; and “Samsung Galaxy =30844130079&007=Search&008=&025=c&026=&gclid=CKy8pp
Pocket Neo,” www.mysmartprice.com/mobile/samsung-galaxy-pocket- Gbmr8CFdBi7AodKXMAxA, accessed July 2014.
neo-msp2810, accessed March 2014.
10. See Justin D. Martin, “Dynamic Pricing: Internet Retailers Are Treat-
3. Karis Hustad, “Kindle Fire HDX Keeps Amazon’s Low Price, Adds ing Us Like Foreign Tourists in Egypt,” Christian Science Monitor,
Extra Features,” Christian Science Monitor, September 26, 2013, January 7, 2011; Patrick Rishe, “Dynamic Pricing: The Future of
www.csmonitor.com/Innovation/2013/0926/Kindle-Fire-HDX- Ticket Pricing in Sports,” Forbes, January 6, 2012, www.forbes
keeps-Amazon-s-low-price-adds-extra-features. .com/sites/prishe/2012/01/06/dynamic-pricing-the-future-of-ticket-
pricing-in-sports/; and Mike Southon, “Time to Ensure the Price Is
4. See information found at http://investor.keuriggreenmountain.com/ Right,” Financial Times, January 21, 2012, p. 30.
annuals-proxies.cfm, accessed September 2014.
11. See Natalie Zmuda, “Best Buy Tries to Co-Opt ‘Showrooming’
5. See Oliver Strand, “With Coffee, the Price of Individualism Can Be This Holiday Season,” Advertising Age, October 29, 2013, http://
High,” New York Times, February 8, 2012, p. D6; and “$51 per adage.com/print/244993/; and Meredith Derby Berg, “Is Best Buy’s
Pound: The Deceptive Cost of Single-Serve Coffee,” New York Times, ‘Showrooming’ Campaign Working?” Advertising Age, December
www.thekitchn.com/51-per-pound-the-deceptive-cost-of-single- 26, 2013, http://adage.com/print/245831/.
serve-coffee-the-new-york-times-165712, accessed February 2014.
