An estimated 25 million borrowers will owe more than their house is worth by 2011. Source: CNNMoney.com Date: 8/06/2009 Keys: Marketing, pricing, consumer behavior, economy, government Link: http://money.cnn.com/2009/08/06/real_estate/underwaterworld/index.htm?postversion=2009080615 Questions for discussion: Research suggests that the current and expected value of a home influences the homeowner’s attitude towards spending. Explain why this would be true. How… Read more »
Posts Tagged: Promotion and Pricing Strategies (p458)
House OKs $2 billion more for Clunker program
House passes bill to add $2 billion for Cash for Clunkers program. Source: CNNMoney.com Date: 7/31/2009 Keys: Marketing, pricing, consumer behavior, economy, government Link: http://money.cnn.com/2009/07/31/autos/cash_for_clunkers_update/index.htm?postversion=2009073114 Questions for discussion: Explain why you think this program has been overwhelmingly successful in stimulating demand for new car purchases? What does price sensitivity suggest to you about why auto… Read more »
China’s new frontier
Chinese telecom-gear makers Huawei and ZTE have already conquered Africa and Asia. Next stop: Latin America. Source: CNNMoney.com Date: 6/25/2009 Keys: International business, marketing, pricing, government Link: http://money.cnn.com Questions for discussion: Are you surprised by China’s successful pricing strategy? What can global competitors do in response to Chinese low-price strategies? Are there lessons to be… Read more »
$1 billion ‘cash for clunkers’ passed
Congress approves a measure to subsidize car purchases – consumers can get as much as $4,500 to trade in old cars. Obama expected to sign bill. Source: CNNMoney.com Date: 6/19/2009 Keys: Marketing, promotion, pricing, government Link: http://money.cnn.com Questions for discussion: Why might some people consider this government stimulus to the economy a “good†or “bad  Read more »
New home sales show signs of revival
Sales of newly constructed homes are showing indications, ever so slight, that the housing decline may be near an end, a government report showed Friday. Source: CNNMoney.com Date: 4/24/2009 Keys: Economics, supply & demand, marketing, pricing Link: http://money.cnn.com Questions for discussion: Housing is a major economic factor that determines employment and production levels in many… Read more »
Hyundai’s $50,000 Puzzle: How to Sell New Luxury Car
Hyundai Motor Co. Chairman Chung Mong Koo insisted the revamped Equus luxury sedan meet all regulations in the U.S., where Hyundai’s flagship has never been sold. Now the U.S. unit has to figure out how to sell a car that costs as much as eight times more than its Accent compacts. Source: Bloomberg News Date:… Read more »
