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Composition of online marketing price

Source: Shangpin China | Type: website encyclopedia | Time: 2015-06-14
The price basis of online marketing is mainly enterprises Website production And some reasonable profit. From the perspective of the above generalized network marketing price, the price is the compensation for the quantifiable cost (the marked price of the product) and the non quantifiable cost (the acquisition cost involving various social factors), and the real price of the product (service) should be the sum of the above two parts.

 Composition of online marketing price

(1) Normalized cost

In the price of online marketing products, the marked price of products is the monetary cost that consumers must pay to obtain products (services). The price of products is put forward from the position of the seller. The cost paid by the enterprise to produce products and provide services is the basic price of goods, but profit is the fundamental starting point of enterprise operation, so the enterprise should also consider the most basic profit. In other words, the quantifiable cost includes the cost of the product and reasonable profit, which together constitute the marked price of the product, that is, the final price seen by the mass consumers.

Among them, product cost includes fixed cost depreciation of plant and machinery, variable cost, labor cost, management cost, etc., which is the monetary expression of all labor paid to produce this product. The commodity prices proposed by online merchants often do not contain some hidden elements, such as transportation fees, consumption taxes, etc. The merchants will hide these elements more and more until the last link of online transactions. For example, when a buyer sees an accessory on Taobao, the agreed price is 50 yuan. Finally, the merchant will tell the buyer that a transportation fee of 10 yuan will be charged if the sales volume is less than 100 yuan. Finally, the buyer must actually pay 60 yuan to get the jewelry.

Profit is the basis for the business operation of commercial enterprises, and reasonable profit is essential for the umbrella industry. In order to be in a favorable position in the competition of Rino, the manufacturer will add a certain amount of profit to the lowest price to complete the pricing. The difference between cost and sales revenue is profit.

(2) Unquantifiable cost

Scholars have their own views on what constitutes the unquantifiable cost. Based on the theories of relevant scholars, the untenable costs in the price can be divided into the following parts, which will be different for enterprises of different natures.

1. Use time cost

Consumers can obtain value gains through a certain discount when purchasing products online, but they must wait for a period of time, which may be several days or even longer. The time interval between ordering and picking up goods is a kind of time cost for customers. At this time, customers are urged to balance the use time and price discount. Generally speaking, customers will choose the discount price, but if they need the product urgently, they will sacrifice the discount price to quickly exchange for the product choice, which is a time sensitive decision-making problem encountered in life. For example, if a manufacturing enterprise wants to purchase raw materials from traditional channels in the region, it can obtain them immediately but at a relatively high price. However, if it finds out from online channels that merchants in other regions purchase raw materials, it can obtain a certain price discount, but it needs to wait for some time. If the enterprise still has raw materials, it will purchase them through online channels in order to obtain a relatively low price. However, if there is no inventory, it must consider the time cost and immediately purchase them from traditional channels and give up value gains.

2. Cost of energy and physical strength

The cost of purchasing energy and physical strength refers to the mental and physical consumption of customers when purchasing and using products. By purchasing products (services) online, you can save time and costs without going to physical stores. However, online shopping is also inconvenient. You should first apply for an account online, then search for all goods or services online, find the corresponding online store, and confirm the purchase of products and after-sales services.

3. Cost of lifestyle change

Online shopping means the change of consumers' original lifestyle. For consumers who do not like to be changed, online shopping is a burden. However, with the growing popularity of the Internet, the lifestyle of shopping through the Internet will gradually become mainstream, and this cost will gradually reduce.

4. Psychological cost

The negative psychological impact of consumers' previous shopping will bring psychological costs, which may be caused by the violation of self-esteem, privacy, etc. Considering the virtuality of online marketing and the unsound legal system of online marketing, this cost may be caused by the following reasons: the information of credit card is discharged, the interference email is received, and the fear of false transactions or failure to receive the purchased products.

From the above analysis, we can see that the price is composed of two parts, so we can get the concept formula of price:

Price=quantifiable cost (product list price+profit)+non quantifiable cost (use time cost+purchase energy and physical cost+lifestyle change cost+psychological cost+...) (8-1)

For the price composition of online marketing products, quantifiable costs are controversial, while non quantifiable costs are the key to understanding. Each kind of cost is not fixed for different customers, even for the same customer in different environments. Moreover, with the development of society, any kind of unquantifiable cost may become smaller, or new cost factors may be added.

In short, the price of network products (services) is composed of a variety of cost factors. When measuring prices, consumers sometimes take various cost factors into consideration, rather than just one factor; But sometimes a certain factor will prevail in decision-making. Therefore, for enterprises engaged in online marketing, it is necessary to know what factors constitute price in consumers' minds, how important each factor is, and so on. Only in this way can enterprises finally formulate successful online marketing price strategies.
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1. Part of the content of this site comes from the network, and the copyright of some articles and pictures involved belongs to the original author. The reprint of this site is for everyone to learn and exchange, and should not be used for any commercial activities.

2. This website does not assume any form of loss or injury caused by users to themselves and others due to the use of these resources.

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