Posted by: Paul.Christ
on Oct 21, 2009
Facebook, MySpace Divide Along Social Lines (NPR)
While many over the age of 30 may view Facebook and MySpace as being essentially the same thing, the main users of these websites have a different view. It appears that different segments are forming between the two that may one day clearly separate who these sites attract.
"No one uses MySpace," says 17-year-old Halie Pacheco, a student at The Urban School. She likes Facebook. "It's safer and more high class," she explains.
Should either of these two sites be concerned about how they are being viewed within the social networking market?
Posted by: Paul.Christ
on Oct 21, 2009
Wal-Mart Announces Price Cuts for Holidays (MSNBC)
As we discussed in our recent post on Wal-Mart’s pricing of books, it was likely their price cutting was not finished and that turns out to be the case. They have expanded price cuts across many product groups and this is almost certainly going to impact many other retailers and should make for a hotly contested holiday season.
Wal-Mart has frequently used its buying power to undercut rivals. It sells enough products in enough categories to make up for any losses on individual items that it uses to pull people into stores or onto its Web site.
Same question as the last time, what retailers are most likely to feel the pain of Wal-Mart’s pricing strategy?
Posted by: Paul.Christ
on Oct 20, 2009
Toys R Us Adds Layaway For Big-Ticket Items (MSNBC)
A staple of retail promotions from the mid-1900s is making a comeback thanks to a down economy. The layaway payment plan is really a pricing strategy retailers use to lock a customers into a product even if the customer currently does not have the cash or sufficient credit to buy right away. In some promotions the retailer allows the customer to pay a small amount over time (i.e., installments) before picking up the product and in other cases the retailer will hold the product until the customer comes with the entire amount. Several retailers have found good response to this approach including Kmart (discussed here) and Toys R Us.
Retailers who have introduced the programs see them as a way to keep customers buying in a time of tight credit and other economic problems. Toys R Us CEO Gerald Storch said his company's customers were requesting a layaway program.
What are the advantages and disadvantages for offering layaway on a hot selling toy?