This solutions highlights various factors that enabled businesses to introduce innovative pricing strategies to their customers. Most of these strategies were made possible by the use of information and communication technologies that made possible cost reduction, process improvement, direct selling and improved customer value through new supply chain models.
Rapid developments in information technology and the growth of eCommerce have significantly impacted companies' pricing strategies. There are several factors contributing to this change, but the major ones are as follows:
1.) Introduction of new business models
Information and communication technology made it possible for companies to do business with new innovative business models which changed their traditional business processes, reduced their costs, built new relations with their customers, and improved their efficiency.
A good example of new business models is the introduction of low cost carriers in the airline industry. These new budget airlines were able to significantly reduce their costs because, with the use of information technology, they were able to eliminate or modify many business processes, which enabled them to pass on cost savings ...
Rapid developments in information technology and the growth of eCommerce have significantly impacted companies' pricing strategies. Companies have managed to reduce their costs by introducing new innovative business models and passing on cost efficiencies to their customers in the form of low prices