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2015 | OriginalPaper | Buchkapitel

9. Pricing in Crises and Price Wars

verfasst von : Hermann Simon

Erschienen in: Confessions of the Pricing Man

Verlag: Springer International Publishing

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Abstract

In the context of this book, we consider a crisis to be a collapse in demand. This has several consequences for pricing. Unlike a market with a balance between supply and demand a crisis induces a “buyer’s market.” The balance of power has shifted in favor of the buyers. Basic indicators of such a situation are the following:

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Fußnoten
1
Statement at the International Automobile Show in Frankfurt in September 2003.
 
2
Comment provided by Georg Tacke, CEO of Simon-Kucher & Partners, who told the author about his conversations with Wendelin Wiedeking.
 
3
Sportwagenhersteller Porsche muss sparen. Frankfurter Allgemeine Zeitung, January 31, 2009, p. 14.
 
4
Hoffnung an den Hochöfen. Handelsblatt, February 12, 2009, p. 12.
 
5
The Wall Street Journal, June 12, 2009, p. B1.
 
6
Colvin G (2009) Yes, you can raise prices. Fortune, March 2, 2009, p. 19.
 
7
Congress Passes $2 Billion Extension of ‘Cash for Clunkers’ Program. ABC News, August 6, 2009.
 
8
Driving out of Germany, to pollute another day. The New York Times, August 7, 2009.
 
9
This action is reminiscent of the tagline of the home improvement chain Praktiker, which offered “20 percent off everything except pet food.” Burnout is the main reason why Praktiker’s permanent discount of 20 % had minimal effect on sales (see chapter 10). In contrast, Hela rarely offered discounts, so a discount of 20 %—especially during a crisis—proved very effective.
 
10
Frankfurter Allgemeine Zeitung, January 31, 2013, p. 11.
 
11
Produktion, April 23, 2012.
 
12
Unter einem schlechten Stern. Handelsblatt, March 20, 2013, p. 20.
 
13
Simon H, Fassnacht M (2008) Preismanagement, 3rd edn. Gabler, Wiesbaden.
 
14
Meitinger K (2009) Wege aus der Krise. Private Wealth, March 2009, pp. 26–31.
 
15
Industry trends in a downturn. The McKinsey Quarterly, December 2008.
 
16
Jargon J (2009) Slicing the bread but not the prices. The Wall Street Journal, August 18, 2009.
 
17
Jannarone J (2010) Panera bread’s strong run. The Wall Street Journal, January 23, 2010.
 
18
The Wall Street Journal, June 11, 2009, p. B2.
 
19
The Global Pricing Study included responses from 2,713 managers from 50 countries.
 
20
Simon-Kucher & Partners, Global Pricing Study 2012, Bonn 2012.
 
21
Heil O (1996) Price wars: issues and results. University of Mainz.
 
22
Simon-Kucher & Partners, Global Pricing Study 2012, Bonn 2012.
 
23
More R (2009) How general motors lost its focus – and its way. Ivey Business Journal, June 2009.
 
24
Sedgwick D (2002) Market share meltdown. Automotive News, November 4, 2002.
 
25
GM is Still Studying the $100,000 Cadillac. Automotive News, May 17, 2004.
 
26
Ovide S (2014) Price war erupts in cloud services. The Wall Street Journal Europe, April 17, 2014, p. 20.
 
27
Presentation by the author: “How to Boost Profit Through Power Pricing” at the World Marketing & Sales Forum, Madrid, November 22, 2008.
 
28
Sapsford J (2005) Toyota Sends Mixed Messages on Detroit Woes The Wall Street Journal, April 27, 2005, p. 22.
 
Metadaten
Titel
Pricing in Crises and Price Wars
verfasst von
Hermann Simon
Copyright-Jahr
2015
DOI
https://doi.org/10.1007/978-3-319-20400-0_9