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:
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 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.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2015 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Simon, H. (2015). Pricing in Crises and Price Wars. In: Confessions of the Pricing Man. Copernicus, Cham. https://doi.org/10.1007/978-3-319-20400-0_9
Download citation
DOI: https://doi.org/10.1007/978-3-319-20400-0_9
Publisher Name: Copernicus, Cham
Print ISBN: 978-3-319-20399-7
Online ISBN: 978-3-319-20400-0
eBook Packages: Business and EconomicsBusiness and Management (R0)