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Marketing questions for the exam JU

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EXAM PREPARATION
Question 1
Four Marketing Management philosophies can be identified that influence marketing
processes.
1.1 One philosophy is a sales orientation. Assuming this is the philosophy used by
Uber, what would this mean for their marketing activities? (2)
If Uber were to adopt a sales orientation philosophy, their marketing activities
would primarily revolve around aggressive selling and promotional strategies. This
approach would entail a strong emphasis on maximizing transaction volumes through
various sales tactics such as discounts, limited-time offers, and other promotional
incentives. Customer satisfaction might take a secondary role, with the primary focus
being on driving immediate sales growth and increasing the frequency of usage among
both existing and potential customers.
1.2 Another alternative is that they would use a market orientation. How would this
choice impact their marketing activities?
(3)
Alternatively, if Uber were to opt for a market orientation philosophy, their marketing
activities would be centered on understanding and ful lling customer needs and
preferences. This approach would involve extensive market research to identify customer
demands, leading to the development of tailored products and services that cater to
speci c customer requirements. Uber would prioritize building long-term relationships
with its customers, emphasizing customer satisfaction and loyalty. Their marketing
strategies would focus on creating value for customers, highlighting the unique features
and bene ts of their services, and constantly adapting to changing market demands to
maintain a competitive edge. This customer-centric approach would likely involve
continuous engagement and feedback mechanisms to ensure that their services align with
evolving consumer expectations.
1.1 If Uber were to adopt a production orientation philosophy, their marketing activities would
prioritize the e cient production and distribution of their services. This approach would likely
focus on streamlining internal operations to maximize output and minimize costs, with less
emphasis on understanding speci c customer needs and preferences. Uber's marketing strategies
would revolve around highlighting the e ciency, reliability, and cost-e ectiveness of their services,
emphasizing factors such as quick service delivery and a ordable pricing. The main goal would be
to increase production and distribution e ciency to meet the demand for their services while
keeping costs as low as possible.
Question 2
Uber management has decided that they would be a market-orientated organisation.
What would this decision mean for Uber?
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Alternatively, if Uber were to opt for a market orientation philosophy, their marketing
activities would be centered on understanding and ful lling customer needs and
preferences. This approach would involve extensive market research to identify customer
demands, leading to the development of tailored products and services that cater to
speci c customer requirements. Uber would prioritize building long-term relationships
with its customers, emphasizing customer satisfaction and loyalty.
Question 4
You have been asked to develop a marketing strategy for Uber. What would be the
components of the marketing strategy for Uber?
Definition of marketing strategy:
A marketing strategy is a detailed plan that outlines how an organization will reach its
target customers and achieve competitive advantage. It involves market research, brand
positioning, pricing, distribution, and promotional tactics, all geared toward maximizing
pro tability and market share. By guiding marketing activities, this strategy helps
businesses e ectively connect with their audience, build strong customer relationships,
and achieve long-term success.
Components: 4Ps (or 7Ps in the case of a service such as Uber) – see detail on class
slides.
The marketing strategy for Uber would be structured around the 7Ps framework tailored
for services. This approach would involve a meticulous de nition and showcasing of
Uber's diverse service o erings, including ridesharing, food delivery, and freight services,
emphasizing their unique features and bene ts to cater to a wide range of customer
needs. A competitive pricing strategy would be implemented, integrating various pricing
models, promotional discounts, and packages to maintain pro tability while ensuring
customer a ordability. The strategy would also prioritize the establishment of an extensive
and e ciently managed service network to ensure broad accessibility and availability of
Uber services across diverse geographic locations. Integrated promotional campaigns
across digital and traditional advertising channels would be employed to enhance brand
visibility and attract a wider customer base, while referral programs and strategic
partnerships would be leveraged to incentivize customer retention and acquisition.
Furthermore, an emphasis would be placed on maintaining a high standard of
professionalism and customer service among drivers and customer support
representatives, fostering positive customer experiences at every touchpoint. Seamless
and user-friendly processes for booking, payment, and customer support, coupled with a
focus on the quality, reliability, and safety of vehicles and a well-designed mobile
application interface and website, would contribute to an overall enhanced customer
experience and the establishment of a strong brand reputation.
Question 6
1. Explain what is meant by a competitive advantage.
This refers to the unique strengths or attributes that allow a business to outperform its
competitors in the market. It can be achieved through various means such as o ering
superior products or services, lower prices, better customer service, or innovative
marketing strategies.
2. A cost competitive advantage can be used by an organisation such as Uber based
on their SWOT analysis. Explain two ways Uber use this advantage.
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a. Economies of Scale: Uber can leverage its large scale of operations to lower its costs
per unit, enabling them to o er competitive pricing to customers. This can be achieved by
spreading xed costs over a larger number of rides, leading to more cost-e cient
operations and allowing them to provide services at a lower price point compared to
smaller competitors.
b. Technological E ciency: By continuously investing in and leveraging advanced
technologies for their operations, such as sophisticated algorithms for route optimization
and demand forecasting, Uber can enhance operational e ciency and reduce costs. This
can lead to savings in fuel consumption, optimized driver routes, and improved overall
service e ciency, allowing Uber to o er cost-e ective services to its customers.
Question 7
The marketing environment at Uber influences the profits of the business but it is
important that that they do environmental scanning.
1. What is meant by the term “environmental scanning”
Environmental scanning refers to the process of analyzing and monitoring the
internal and external factors that can potentially impact an organization's business
operations and performance. It involves systematically gathering information about the
various elements within the business environment, including market trends, competitors'
activities, technological advancements, regulatory changes, and socio-economic factors,
among others. This process helps businesses like Uber to identify opportunities and
threats, enabling them to make informed strategic decisions and adapt to changes
effectively.
2. How would the technological and economic factors impact how Uber operates
and markets their business?
a. Technological Factors: Technological advancements significantly influence
Uber's operations and marketing strategies. Innovations in transportation technology, such
as the development of autonomous vehicles and advancements in app-based
functionalities, can enhance Uber's service offerings and improve overall customer
experience. On the other hand, the rapid evolution of technology necessitates continuous
updates and investments in their platform to remain competitive. Integrating new
technologies also enables Uber to improve operational efficiency, expand service
capabilities, and introduce innovative marketing campaigns to reach and engage a broader
customer base.
b. Economic Factors: Economic conditions, such as uctuations in fuel prices, in ation
rates, and overall consumer spending, can impact Uber's operations and market
dynamics. During periods of economic downturn, consumers may opt for more coste ective transportation options, leading to a potential increase in demand for Uber's
services. Conversely, during economic upturns, consumers may be more inclined to
spend on premium services, allowing Uber to introduce premium service tiers.
Understanding these economic trends enables Uber to adjust pricing strategies, tailor
promotional activities, and develop targeted marketing campaigns to e ectively cater to
evolving consumer preferences and maximize pro tability.
Question 8
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Sven is travelling to Sydney, Australia for the first time in the summer and needs to
decide on transport alternatives for getting around the city. One alternative is the
use4
of Uber. Explain how he would move through the consumer decision-making
process.
(Hint: explain each step and give an example as it relates to Sven.)
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Problem Recognition: Sven recognizes the need for convenient and reliable
transportation options to navigate through Sydney during his trip. He realizes that
relying solely on public transportation might limit his mobility, especially if he wants
to visit multiple destinations in a short period.
Information Search: Sven starts gathering information about various
transportation options in Sydney. He may seek recommendations from friends or use
online resources to compare the convenience, cost, and availability of di erent
options, such as taxis, rental cars, public transport, and ride-sharing services like
Uber.
Evaluation of Alternatives: After considering di erent transportation alternatives,
Sven compares the advantages and disadvantages of each option. He assesses
factors like cost, ease of access, exibility, and the convenience of not having to
navigate unfamiliar roads or rely on unfamiliar public transportation routes. He
weighs these factors against his preferences for a hassle-free and e cient mode of
transportation.
Purchase Decision: Sven, after careful evaluation, decides to use Uber for his
transportation needs in Sydney. He makes the decision based on the convenience of
booking rides through the Uber app, the availability of various vehicle options
depending on his needs, and the assurance of a reliable and safe transportation
service throughout his trip.
Post-Purchase Behavior: As Sven begins using Uber during his stay in Sydney, he
assesses his experience based on factors such as the quality of service, the
e ciency of the rides, and the overall convenience o ered by Uber in comparison to
other modes of transportation. If he nds the experience to be positive, it is likely that
he will continue using Uber for the remainder of his trip and may even recommend it
to others. However, if he encounters any issues or challenges, his post-purchase
behavior might involve providing feedback or seeking alternative transportation
options for the remainder of his stay.
Question 9
Culture influences whether we buy, what we buy, where we buy and how often we
buy. This is also true for Sven, a Swede who lives in Jönköping. Explain three
cultural
factors could influence his decision whether or not to use Uber.
NOTE: the same question can be posed for the other influences (social (pp.114-117)
(Section 6-7), individual (pp.117-119) (Section 6-8) and psychological (pp.119-123)
(Section 6-9) that are discussed.
Cultural factors play a signi cant role in shaping consumer behavior and decision-making.
In the case of Sven, a Swede from Jönköping, several cultural factors might in uence his
decision whether or not to use Uber:
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1. **Cultural Values and Norms:** Swedish culture emphasizes egalitarianism and a
strong sense of social responsibility. Sven might consider how Uber aligns with these
values. If he perceives Uber as a company that promotes fair treatment of its drivers and
contributes positively to the community, he might be more inclined to use the service. On
the other hand, if there are concerns about Uber's business practices con icting with
Swedish values, he might choose an alternative transportation option that better aligns
with his cultural beliefs.
2. **Language and Communication:** The Swedish language and communication style
could in uence Sven's decision regarding the use of Uber. If the Uber app and service are
available in Swedish and e ectively communicate relevant information in a culturally
appropriate manner, Sven might nd it more accessible and user-friendly. On the contrary,
if there are language barriers or communication issues that make it di cult for him to
understand or use the service, he might opt for a transportation alternative that provides a
more seamless communication experience in his native language.
3. **Perception of Privacy and Trust:** Swedish culture places a high value on privacy
and trust. Sven might consider how Uber handles customer data, privacy concerns, and
the overall trustworthiness of the service. If Uber is perceived as respecting user privacy
and maintaining high data security standards, Sven might feel more comfortable using the
service. Conversely, if there are widespread concerns or negative perceptions regarding
Uber's data handling practices, it might deter Sven from using the service, leading him to
choose a transportation option that prioritizes data privacy and security in line with his
cultural expectations.
Question 10
1. How does the demand differ between consumer and business markets? How
would these factors impact a stationery chain like Staples?
Di erences in Demand between Consumer and Business Markets and Impact
on Staples:
The demand in consumer markets is often in uenced by individual preferences,
personal needs, and purchasing power. Consumers are typically driven by
emotional and personal factors when making buying decisions. In contrast, demand
in business markets is driven by factors such as the need for operational e ciency,
cost-e ectiveness, and the ability to enhance business productivity. For a stationery
chain like Staples, understanding these di erences is crucial. They would need to
tailor their product o erings and marketing strategies to cater to the speci c needs
of both consumer and business markets. For consumers, Staples might focus on
o ering a diverse range of attractive and a ordable stationery products that appeal
to personal preferences and aesthetics. For businesses, they might emphasize bulk
purchase options, competitive pricing, and the provision of specialized o ce
supplies that contribute to enhancing organizational e ciency and productivity.
2. The nature of buying influence and type of consumers also differs in the case of
business markets. How would these factors impact a stationery chain like
Staples?
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Impact of Buying In uence and Consumer Types on Staples:
In business markets, buying decisions are often more complex and involve multiple
decision-makers or stakeholders within the organization. These decision-makers
might include procurement managers, department heads, or executives, each with
varying priorities and requirements. Understanding this intricate buying in uence is
crucial for Staples to tailor their marketing and sales strategies accordingly. They
would need to provide comprehensive product information, competitive pricing,
and reliable customer service to address the diverse needs and preferences of
di erent decision-makers within the business. Additionally, Staples would need to
build strong relationships with corporate clients, o ering customized solutions, bulk
discounts, and e cient delivery options to maintain long-term partnerships. In the
consumer market, the buying in uence is more straightforward, often driven by
individual preferences and personal needs. Staples would focus on providing an
appealing and user-friendly shopping experience, o ering a wide variety of
stationery products that cater to di erent consumer preferences and tastes. They
might also emphasize the importance of quality, a ordability, and convenience to
attract and retain individual customers.
Question 11
When making a decision, a buying centre (for example) will consider a number of
different evaluative criteria, specifically quality, service and price. How would these
three criteria differ between the three buying situations within an organisation? E.g.,
would price (or quality) be equally important in all buying situations?
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Routine Purchase Situations:
In routine purchase situations, the emphasis is often on operational e ciency and coste ectiveness. Here, price tends to be a critical factor, as organizations aim to minimize costs
and ensure the continuity of operations. While quality remains important, it might not be the
top priority, especially for standardized or frequently used products. Service might also be
valued, but e cient and timely delivery might be more signi cant than personalized or
specialized customer service.
Limited Decision-Making Situations:
In limited decision-making situations, organizations might seek a balance between cost
savings and quality. While price remains a signi cant consideration, organizations might be
willing to invest slightly more for better quality to ensure product reliability and longevity.
Service becomes more important in terms of after-sales support, warranty, and assistance
with any technical or functional issues that may arise.
Extensive Decision-Making Situations:
In extensive decision-making situations, organizations are often making high-stakes or
strategic purchases. Here, quality takes precedence, as the focus is on long-term
performance, durability, and the overall value that the product or service can provide. While
price remains a consideration, organizations might be more willing to invest in higher-priced
o erings that demonstrate superior quality and reliability. Service becomes a crucial
di erentiator, with an emphasis on personalized support, customization, and ongoing
collaboration to ensure that the product or service aligns perfectly with the organization's
speci c needs and goals.
Question 12
Uber has identified a possible market segment in the north of Sweden.
1. What would characterise a “market segment”?
Characteristics of a Market Segment:
A market segment is a group of potential customers who share speci c characteristics,
needs, preferences, or behaviors that distinguish them from the broader market. Market
segmentation involves dividing a larger, heterogeneous market into smaller, more
homogenous segments, allowing companies like Uber to tailor their products, services, and
marketing e orts to better meet the unique requirements of each group.
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2. It could be said that a segment needs to be substantial as well as being
identifiable and measurable. Explain what this means for Uber in their market
segmentation.
Substantial, Identi able, and Measurable Segments for Uber:
• Substantial: A substantial market segment implies that it is large enough to warrant
investment in terms of resources and marketing e orts. For Uber in the north of
Sweden, this means they should assess whether there is a signi cant number of
potential customers in this region who have a demand for their services. If the
segment is too small, it may not justify a dedicated marketing strategy.
• Identi able: Identi ability refers to the ability to distinguish and recognize the
characteristics that de ne a particular segment. Uber needs to ascertain whether
they can clearly identify the individuals or groups within the north of Sweden who t
their desired segment. For instance, they might look for common demographic or
psychographic traits that unite this segment.
• Measurable: Measurability implies that Uber can quantify and assess the size and
potential of the identi ed segment. Uber must be able to collect data and metrics to
determine the segment's size, purchasing power, and potential for growth. This
measurement helps in evaluating the segment's attractiveness and pro tability.
Question 13
Segmenting a market can be an important activity for an organisation like Uber.
1. What is meant by the term segmentation?
Segmentation refers to the process of dividing a heterogeneous market into smaller,
more homogeneous groups or segments based on speci c criteria. These criteria can
include various factors such as demographics, psychographics, geographic location, and
behavioral patterns. The aim of segmentation is to enable organizations like Uber to better
understand and target distinct customer groups with tailored marketing strategies and
o erings that e ectively meet their unique needs and preferences.
2. Uber could use psychographic and demographic variables to segment their
market. Explain how Uber would carry this out.
Psychographic Segmentation: Uber can use psychographic variables such as
lifestyle, values, interests, and attitudes to segment their market. For instance, they
might identify segments of customers in the north of Sweden who prefer
environmentally friendly transportation options or those who value convenience and
comfort. By understanding these psychographic traits, Uber can customize their
services and marketing communications to resonate with the speci c preferences
and lifestyles of these customer segments.
Demographic Segmentation: Uber can utilize demographic variables such as age,
gender, income, and occupation to segment their market. They might identify
segments of working professionals who require e cient and reliable transportation
for their daily commute or segments of younger individuals who prioritize a ordability
and exibility in their transportation options. By analyzing these demographic factors,
Uber can tailor their service o erings, pricing strategies, and promotional activities to
e ectively target and cater to the needs of each demographic segment in the north
of Sweden.
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NOTE: the other variables or bases of segmentation (e.g., geographic could also be
asked in the question.
Question 14
Uber wants to research customer satisfaction among their Stockholm customers,
and
this is defined as their research problem.
1. Explain the components of the research design you would recommend they use
to answer this research problem.
a. Purpose Statement: Clearly de ne the purpose of the research, emphasizing the speci c
objectives and expected outcomes related to understanding customer satisfaction among Uber's
Stockholm customers. This statement should guide the entire research process and ensure that
the ndings directly address the research problem.
b. Data Collection Method: Utilize a combination of quantitative and qualitative methods, such
as surveys, interviews, and focus groups, to gather comprehensive data on customer satisfaction.
This approach allows for the collection of both numerical ratings and in-depth insights into
customer experiences and preferences, providing a holistic understanding of the factors
in uencing customer satisfaction in Stockholm.
c. Sampling Plan: Develop a detailed sampling plan that de nes the target population, sampling
frame, and sampling techniques to be employed. Ensure that the sample size is adequate and
representative of the diverse customer segments in Stockholm, allowing for meaningful analysis
and generalization of ndings to the broader customer base.
2. What sampling procedures would you recommend they use in their research?
Motivate your answer.
Considering the research goal of understanding customer satisfaction among Uber's Stockholm
customers, a combination of probability and strati ed sampling procedures would be appropriate.
This approach would ensure that the sample selected is representative of the diverse customer
segments in Stockholm, allowing for reliable and valid insights into customer satisfaction levels.
Probability sampling methods, such as simple random sampling or systematic sampling, would
enable the selection of respondents from the entire population of Uber customers in Stockholm,
ensuring equal opportunities for every customer to be included in the research. Additionally,
employing strati ed sampling techniques would allow for the division of the population into
meaningful segments, such as frequent users, occasional users, and new users, ensuring that
each segment is adequately represented in the sample, thus providing a comprehensive
understanding of the various customer experiences and perspectives.
Question 15
The marketing research process shows a number of steps that Uber would
implement
when collecting data. Explain each of these steps and show how they would be
done
by Uber.
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De ning the Problem and Research Objectives: Uber would clearly de ne the
research problem, such as understanding customer preferences for speci c services
or identifying factors in uencing customer satisfaction. They would establish speci c
research objectives to guide the entire research process, ensuring that the data
collected directly addresses the identi ed problem.
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Developing the Research Plan: Uber would develop a comprehensive research
plan outlining the research approach, data collection methods, sampling procedures,
and the timeframe for data collection. They would determine whether to use surveys,
interviews, focus groups, or a combination of these methods to gather relevant data
from their customers in Stockholm.
Collecting Information: Uber would execute the research plan by collecting data
from their Stockholm customers. They may use various data collection methods,
such as online surveys, in-person interviews, or analyzing customer feedback from
their app, to gather information on customer preferences, experiences, and
satisfaction levels.
Analyzing the Information: Uber would analyze the collected data using various
analytical techniques to identify patterns, trends, and correlations within the data.
They might employ statistical analysis, sentiment analysis, or thematic analysis to
extract meaningful insights from the collected information, allowing them to
understand customer behavior and preferences more comprehensively.
Presenting the Findings: Uber would present the research ndings in a clear and
concise manner, utilizing visual aids such as graphs, charts, and reports to
communicate the insights e ectively. They would highlight key ndings related to
customer satisfaction, preferences, and any actionable recommendations derived
from the research.
Making Decisions: Based on the research ndings, Uber would make informed
decisions and develop strategies to enhance customer satisfaction, improve service
o erings, and address any identi ed issues or concerns. They would use the
research insights to tailor their marketing e orts and re ne their business operations
to better meet the needs and expectations of their customers in Stockholm.
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Question 16
Organisations like Uber and ICA sell a wide range of products.
1. What is meant the by the term “product”?
In marketing, a product refers to a tangible or intangible o ering that is created and
marketed to ful ll the needs or wants of a consumer. This can include physical goods,
services, experiences, or a combination of these elements that are designed to satisfy a
speci c demand in the market.
2. Four types of consumer products can be identified. Explain these 4 types, giving
examples of each.
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a. Convenience Products: These are products that are inexpensive, widely available, and require
minimal e ort for purchase. Examples include everyday items like bread, milk, newspapers, and
household supplies.
b. Shopping Products: Shopping products are those that consumers generally purchase after
comparing quality, price, and style from various brands or retailers. Examples include clothing,
furniture, and electronic goods.
c. Specialty Products: Specialty products are unique or high-end items that possess speci c
characteristics, brand identi cation, or unique attributes for which a signi cant group of buyers is
willing to make a special purchasing e ort. Examples include luxury goods like designer handbags,
luxury cars, and high-end watches.
d. Unsought Products: Unsought products are those that consumers do not actively seek out or
may not be aware of. These products typically require aggressive marketing or sales e orts to
generate consumer interest. Examples include life insurance, funeral services, and emergency
products like roadside assistance kits.
Question 17
Head and Shoulders have decided to introduce a new range of hair treatment
products
using the name “Head and Shoulders” to launch this new range.
1. It could be suggested that Head and Shoulders are using family branding. What is
meant by this term?
Family branding, also known as umbrella branding or corporate branding, is a marketing
strategy in which a company uses its established brand name to promote and sell multiple
related products or product lines. In this case, Head and Shoulders is using the existing
brand name to introduce a new range of hair treatment products, indicating the use of
family branding.
2. Explain two benefits that could be associated from having a strong brand for an
organisation like Head and Shoulders.
a. Brand Recognition and Loyalty: A strong brand like Head and Shoulders enjoys high
brand recognition among consumers. This recognition leads to customer loyalty, as
people are more likely to trust and choose products from a brand they are familiar with. It
can also help in customer retention, as existing customers are more likely to try new
products under the same trusted brand.
b. Cost E ciency: Maintaining a strong brand can lead to cost e ciencies in marketing
and advertising. When a brand is well-established, it often requires less marketing
expenditure to promote new products or product lines. Additionally, a strong brand can
command premium pricing, which can be advantageous for an organization like Head and
Shoulders. Customers are often willing to pay more for products associated with a
reputable and trusted brand, which can result in higher pro tability for the company.
Question 18
There are different brand strategies that an organisation takes when managing their
brands. A company that produces skincare products for women, has decided to
launch
a new range of products for men. They have decided to use a manufacturer
branding
strategy. What benefits would this provide for the organisation?
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Enhanced Credibility and Trust: The use of a manufacturer's established
reputation and credibility can help instill trust among consumers for the new product
line. If the manufacturer is well-known for producing high-quality and e ective
skincare products, this positive association can transfer to the new range for men,
potentially encouraging trust and con dence in the new products among consumers.
Cost E ciency in Marketing: Leveraging the manufacturer's brand recognition
can lead to cost e ciencies in marketing and promotional e orts. Since the
manufacturer's brand is already established, the need for extensive marketing
campaigns solely for the new product line can be minimized. This can result in cost
savings and a more e cient allocation of resources, allowing the company to focus
on product development and other crucial aspects of the new product launch.
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Note: this could be asked asking about a private brand, an individual, a family brand
or a co-branding strategy. Examples of these must be related to the case in mention.
Question 19
New products are critical to the development of organisations and Uber continually
introduces new products and services like Uber Eats and UScoot (a fictitious
innovation)
1. What is meant by a “new product”
A new product refers to a product or service that is introduced to the market for the rst
time by an organization. This can include innovations, improvements, or modi cations to
existing products, or entirely new o erings that meet a speci c consumer need or
demand.
2. Explain any 4 categories of new products that Uber can develop and introduce
into the market.
a. Product Line Extension: Uber can introduce variations or extensions of their existing services,
such as new types of ridesharing options, upgraded vehicle models, or premium service tiers,
catering to di erent customer segments and enhancing the overall user experience.
b. Brand Extension: Uber can leverage its brand name and customer trust to enter new related
markets. For example, they can introduce new services in the transportation sector, such as bikesharing programs, scooter rentals, or electric vehicle charging stations, to expand their reach and
provide a comprehensive range of mobility solutions.
c. Radical Innovation: Uber can engage in groundbreaking innovations, such as the development
of self-driving cars or the implementation of advanced arti cial intelligence technology to improve
their service e ciency, safety standards, and overall customer experience, thus revolutionizing the
transportation industry.
d. Continuous Improvements and Upgrades: Uber can focus on making incremental
improvements to their existing services and technology, introducing updates to their mobile
application interface, enhancing driver-partner support systems, and implementing advanced
safety features to ensure the continuous enhancement and optimization of their services for both
drivers and customers.
Question 20
To develop a new product, organisations follow a new-product strategy, which is the
first step they consider. Uber has decided to expand its services into providing
scooters (UScoot) that customers can hire. Explain the 5 steps they would go
through
to get the service to the market.
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Idea Generation:
Uber would begin by generating ideas and concepts for the new scooter service. This
might involve brainstorming sessions, market research, and analyzing consumer trends and
preferences in the transportation industry to identify the potential demand for such a
service. They might also assess the success of similar services in other regions or markets
to gauge the feasibility and potential adoption of the new product.
Idea Screening:
In this stage, Uber would evaluate the generated ideas and screen them to select the most
viable concept for the UScoot service. They would assess the potential market size,
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pro tability, and alignment with the company's overall goals and objectives. Factors such as
technological feasibility, consumer demand, and potential competition would be considered
to ensure that the selected idea aligns with Uber's capabilities and resources.
Concept Development and Testing:
Uber would then develop a detailed concept for the UScoot service, outlining its key
features, pricing strategies, target market, and operational logistics. They might create
prototypes or conduct focus groups and surveys to gather feedback from potential
customers and stakeholders. This testing phase helps in re ning the concept, identifying
potential challenges, and ensuring that the UScoot service meets the speci c needs and
expectations of the target market.
Marketing Strategy Development:
Once the concept is validated, Uber would develop a comprehensive marketing strategy
for the UScoot service. This strategy would include de ning the target market segments,
identifying key competitive advantages, and outlining the promotional activities and
distribution channels to e ectively reach and engage the target customers. Pricing
strategies, branding initiatives, and a detailed launch plan would also be developed to
create a strong market presence for the new service.
Product Development and Commercialization:
Uber would proceed with the actual development of the UScoot service, including the
design and manufacturing of the scooters, the development of the necessary mobile
application interface, and the establishment of the operational infrastructure to support the
service. They would conduct rigorous testing and quality assurance processes to ensure
that the service meets the required standards and complies with all regulatory and safety
guidelines. Finally, a well-planned commercialization strategy would be implemented,
involving a strategic launch, customer outreach, and ongoing monitoring and adjustments to
ensure the successful integration of the UScoot service into the market.
Question 21
“The product life cycle concept is a value concept that explains the life of a
product”.
1. What is meant the “product life cycle”?
The product life cycle refers to the stages that a product goes through from its introduction to the
market until its eventual decline and removal from the market. It is a concept that illustrates the
di erent phases of a product's existence and the corresponding sales and pro t levels during
each phase.
2. Explain the 4 phases of the PLC for the new range for UScoot
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a. Introduction Phase: During the introduction phase, UScoot would be launched into the
market, with initial promotional activities and marketing campaigns to create awareness and
generate interest among potential customers. Sales would be relatively low initially as the product
is introduced to the target market, and there might be signi cant investment in research and
development and marketing to establish the product's position and build brand recognition.
b. Growth Phase: As UScoot gains traction and consumer acceptance, the product would enter
the growth phase, characterized by a rapid increase in sales and market share. Uber would
continue to invest in expanding the service's reach, improving operational e ciency, and
enhancing customer satisfaction. Competition might intensify during this phase, leading to pricing
strategies and product di erentiation to maintain and expand the customer base.
c. Maturity Phase: In the maturity phase, UScoot would reach its peak level of market
penetration, with sales stabilizing and reaching a saturation point. Competitors would have
introduced similar services, leading to price stabilization and intense marketing e orts to retain
market share. Uber would focus on product di erentiation, customer loyalty programs, and
service enhancements to extend the product's life cycle and maximize pro tability during this
phase.
d. Decline Phase: Eventually, UScoot would enter the decline phase, characterized by a decline
in sales and market share due to changing consumer preferences, technological advancements,
or the emergence of alternative transportation solutions. Uber would need to make critical
decisions during this phase, such as whether to invest in product modi cations, diversi cation, or
the gradual phasing out of the product from the market to focus on more pro table opportunities.
Question 22
Services are critically important for any economy.
1. What is meant by the term “service”?
In the context of business and economics, a service refers to an intangible o ering
provided to customers or clients in exchange for payment. Services can include a wide
range of activities, such as professional assistance, advice, expertise, or the performance
of speci c tasks to meet the needs or demands of consumers.
2. What are the unique characteristics of a service?
Intangibility: Services are intangible and cannot be seen, touched, or stored. They often
involve experiences, performances, or actions that are not physical in nature, making it
challenging for customers to assess their quality before consumption.
Inseparability: Services are often produced and consumed simultaneously. The
production and delivery of the service are inseparable from the service provider, requiring
direct interaction between the service provider and the customer during the service
delivery process.
Variability: Services can be variable in quality and consistency due to their dependence
on human interaction and performance. Factors such as the skills and attitudes of service
providers, as well as the speci c circumstances during service delivery, can lead to
variations in the quality and customer experience.
Perishability: Services are often perishable and cannot be stored for future use. Unused
service capacity at a particular time is lost forever, making it crucial for service providers to
manage demand and capacity e ectively to avoid revenue loss and maintain service
quality.
Question 23
Any service, such as a bank anticipates delivering service quality to their clients.
Research suggests that there are five dimensions of service quality that riders
(customers) would use to evaluate their Uber trip. Explain how each of these
dimensions could be used to evaluate Uber.
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Reliability: This dimension refers to the ability of the service provider to deliver the service
accurately and dependably. For Uber, riders would evaluate the reliability based on the timely
arrival of drivers, accurate ETAs, and consistent adherence to the scheduled pick-up and
drop-o times. Reliability also encompasses safe and e cient transportation, ensuring that
drivers follow optimal routes and provide a secure and smooth ride experience.
Assurance: Assurance entails building trust and con dence in the service provider. For
Uber, riders would assess assurance based on the professionalism and competence of the
drivers, as well as the overall safety measures implemented by the company. This includes
ensuring that drivers are licensed, background-checked, and trained to provide a secure and
reliable transportation service. Additionally, clear communication, transparent pricing, and
responsive customer support contribute to the assurance dimension.
Tangibles: Tangibles refer to the physical and observable aspects of the service. In the
context of Uber, riders would evaluate tangibles based on the condition of the vehicles,
cleanliness, and overall comfort provided during the trip. This includes factors such as the
cleanliness of the car's interior, the functionality of the app interface, and the overall userfriendliness of the booking and payment processes.
Empathy: Empathy involves understanding and addressing the individual needs of
customers. Uber can demonstrate empathy by providing personalized services,
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accommodating special requests or preferences, and o ering a supportive and customercentric approach to addressing any issues or concerns that riders may have during their trip.
This can include attentive and courteous communication from drivers, as well as responsive
customer service support for any inquiries or complaints.
Responsiveness: Responsiveness refers to the willingness and readiness of the service
provider to assist customers promptly. For Uber, this dimension encompasses the timely
response to customer inquiries or complaints, e cient handling of any issues during the trip,
and the overall ability to address customer needs and concerns e ectively. This also includes
the ability to adapt to dynamic circumstances, such as tra c conditions, to ensure a
seamless and timely transportation service for riders.
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Question 24
The Gap model suggests 5 gaps that can be used to explain the service issues
within
organisations. Explain these 5 gaps, indicating how they influence what service
organisations like airlines implement.
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Gap 1: Customer Expectations versus Management Perceptions:
This gap represents the disparity between customer expectations and management's
understanding of these expectations. In the context of airlines, Gap 1 can arise when
management fails to accurately comprehend the speci c needs and preferences of their
target customers, leading to a misalignment between the services o ered and the
customers' actual expectations. To bridge this gap, airlines need to conduct comprehensive
market research and gather customer feedback to gain a deeper understanding of customer
expectations and preferences.
Gap 2: Management Perceptions versus Service Quality Speci cations:
Gap 2 refers to the discrepancy between management's perceptions of customer
expectations and the actual service quality speci cations developed by the organization.
Within the airline industry, Gap 2 can arise when there is a lack of e ective communication
and translation of customer expectations into speci c service quality standards and
protocols. To address this gap, airlines need to ensure e ective communication channels
between management and service delivery teams, along with clearly de ned service quality
standards and protocols that re ect customer expectations accurately.
Gap 3: Service Quality Speci cations versus Service Delivery:
This gap re ects the disconnect between the service quality speci cations outlined by the
airline and the actual service delivery experienced by customers. In the context of airlines,
Gap 3 can occur due to issues such as inconsistencies in service delivery, inadequate
employee training, or operational ine ciencies that a ect the overall customer experience.
To minimize this gap, airlines need to focus on comprehensive training programs for sta ,
e cient operational processes, and regular performance evaluations to ensure that service
delivery aligns closely with the established service quality speci cations.
Gap 4: Service Delivery versus External Communications:
Gap 4 highlights the disparity between the service delivered to customers and the external
communications or marketing promises made by the airline. Within the airline industry, Gap 4
can emerge when marketing messages or advertisements create in ated expectations that
are not met during the actual service delivery, leading to customer dissatisfaction. To bridge
this gap, airlines must ensure that their marketing communications accurately re ect the
actual service o erings and customer experience, thus managing customer expectations
more e ectively.
Gap 5: Expected Service versus Perceived Service:
Gap 5 represents the gap between the service customers expect to receive and the service
they perceive they have received. In the context of airlines, Gap 5 can occur due to various
factors such as customer biases, individual experiences, or discrepancies between actual
service delivery and customer perceptions. To address this gap, airlines need to focus on
enhancing customer engagement, soliciting feedback, and implementing e ective complaint
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resolution mechanisms to ensure that customers' perceived service aligns closely with their
expected service.
Question 25
Even if an organisation has a good product, it is important that the consumer is able
to buy the product. This is where an efficient and integrated supply chain plays an
important part.
1. What is meant by an “integrated supply chain”?
An integrated supply chain refers to a coordinated and interconnected system of
processes, activities, resources, and technologies that facilitate the seamless ow
of goods, services, and information from the initial production stage to the nal
delivery of products to the end consumer. It involves the integration of various
stakeholders, including suppliers, manufacturers, distributors, and retailers, to
ensure a streamlined and e cient ow of products or services through the entire
supply chain network.
2. This integration can be internal or external, or both. Explain what is meant by
these,
and how an organisation like Uber can implement them to their advantage.
Internal Integration: Internal integration in the supply chain involves the alignment
and coordination of various internal functions and departments within an
organization. For Uber, this could entail the synchronization of di erent operational
units such as marketing, product development, and logistics, to ensure a smooth
and cohesive ow of services. By integrating internal processes, Uber can enhance
e ciency, reduce operational redundancies, and improve overall service delivery,
ultimately leading to a more seamless and customer-centric experience.
b. External Integration: External integration in the supply chain refers to the
collaboration and coordination with external partners, including suppliers,
manufacturers, distributors, and other service providers, to optimize the ow of
materials, information, and services across the supply chain network. For Uber,
external integration could involve strategic partnerships with vehicle manufacturers,
technology companies, and local transportation authorities to enhance the
availability of resources, improve operational capabilities, and ensure a reliable and
e cient transportation service. By fostering strong relationships and collaboration
with external partners, Uber can e ectively manage costs, enhance service quality,
and expand its market reach, thereby gaining a competitive edge in the
transportation industry.
Question 26
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You have been appointed as a supply chain manager at Uber. The task requires you
to implement a number of business processes to increase customer satisfaction
and
profitability.
1. What is meant by a “business process” within the context of supply chain
management?
In the context of supply chain management, a business process refers to a series of
interconnected activities, tasks, or steps that are undertaken within an organization
to facilitate the e cient and e ective ow of goods, services, and information
throughout the supply chain network. These processes are designed to optimize
operational e ciency, enhance productivity, and ensure the timely delivery of
products or services to meet customer demands and expectations.
2. Explain two processes that you will focus on in your task.
Demand Forecasting and Planning: Implementing a robust demand forecasting
and planning process would be crucial for Uber. By utilizing advanced analytics and
data-driven techniques, the company can accurately predict and anticipate
customer demand patterns for di erent transportation services in various regions.
This process would enable Uber to optimize its resource allocation, improve service
availability, and enhance customer satisfaction by ensuring that the right number of
drivers and vehicles are available to meet the uctuating demand e ciently.
b. Supplier Relationship Management (SRM): Focusing on e ective supplier
relationship management is essential for Uber to ensure the timely and reliable
availability of resources, such as vehicles, maintenance services, and technological
infrastructure. By establishing strong partnerships and collaborative frameworks
with key suppliers, Uber can streamline its procurement processes, negotiate
favorable pricing terms, and ensure a consistent supply of high-quality resources.
This process would contribute to cost savings, improved service quality, and
enhanced operational resilience, ultimately leading to increased customer
satisfaction and long-term pro tability for the organization.
Question 27
The communication process is integral to Uber when they want to communicate
with
their target market. Explain the elements in the communication process, showing
how
Uber can use each of them when communicating their customers?
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Sender: Uber, as the sender, initiates the communication process by crafting and
delivering the intended messages to its target customers. It is crucial for Uber to ensure that
the messages are clear, consistent, and aligned with the company's brand image and values.
Encoding: Uber encodes its messages by choosing appropriate language, content, and
visual elements to e ectively convey its o erings and value propositions to its customers.
This involves tailoring the communication to resonate with the preferences, needs, and
demographics of the target market, ensuring that the messages are engaging and relevant.
Message: The message is the content that Uber intends to communicate to its customers.
This includes information about its services, promotions, bene ts, and any other relevant
details that would appeal to the target audience. Uber must ensure that the message is
concise, compelling, and highlights the unique selling points of its services to capture the
attention and interest of its customers.
Channel: Uber utilizes various communication channels, such as its mobile application,
social media platforms, email newsletters, and advertising campaigns, to disseminate its
messages to the target market. By strategically selecting the most e ective communication
channels, Uber can reach its customers at the right time and in the right context, maximizing
the impact and engagement of its communication e orts.
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Decoding: Customers decode the messages received from Uber based on their
understanding, perceptions, and interpretations. Uber must anticipate how its customers will
interpret the messages and ensure that the communication is designed to be easily
understandable and resonates with the target audience's preferences and values.
Receiver: The receiver in the communication process is the target market or the customers
of Uber. Uber focuses on understanding its customers' needs, preferences, and behaviors to
tailor its communication strategies and messages to e ectively engage and resonate with
the target audience.
Feedback: Uber encourages feedback from its customers to gauge the e ectiveness of its
communication e orts. By actively seeking and analyzing customer feedback, Uber can gain
valuable insights into the customers' perceptions, preferences, and satisfaction levels,
allowing the company to re ne its communication strategies and improve customer
engagement over time.
Question 28
The promotional mix uses a number of ingredients, components or strategies to
communicate with the target market. Explain the various components that Uber can
consider using to communicate with their target market in Jönköping. Show clearly
how Uber would use them.
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Advertising: Uber can use advertising strategies such as online and o ine
advertisements, including social media ads, digital banners, billboards, and local
print media, to create awareness about their services, special promotions, and
bene ts for customers in Jönköping. They can highlight the convenience, safety, and
reliability of their transportation services to attract and retain customers in the region.
Sales Promotion: Uber can o er sales promotions such as discounts, referral
bonuses, and special o ers for rst-time users or frequent riders in Jönköping. By
providing promotional codes, limited-time o ers, and exclusive deals, Uber can
encourage more people to use their services, thereby increasing customer
engagement and loyalty within the local market.
Public Relations (PR): Uber can engage in PR activities such as participating in
community events, sponsoring local initiatives, and partnering with local
organizations to demonstrate their commitment to the community and build a
positive brand image in Jönköping. By fostering positive relationships with the local
community, Uber can enhance its reputation and credibility, leading to increased
customer trust and loyalty.
Direct Marketing: Uber can implement direct marketing strategies, including
targeted email campaigns, personalized messages, and in-app noti cations, to
communicate directly with customers in Jönköping. By customizing their marketing
messages based on user preferences, trip history, and location-speci c o ers, Uber
can deliver tailored and relevant communication that resonates with the speci c
needs and interests of their target market in Jönköping.
Personal Selling: Uber can focus on personal selling by training their drivers to
provide exceptional customer service, ensure safe and comfortable rides, and act as
brand ambassadors for Uber in Jönköping. By emphasizing the importance of
customer satisfaction and fostering positive interactions between drivers and riders,
Uber can build strong customer relationships and encourage word-of-mouth
referrals, thereby expanding their customer base and market presence in the region.
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Question 29
There are a number of factors that affect the promotional mix, and the various
promotional tools used by the organisation. Comment on three of these factors,
showing how they would be used by Uber Stockholm.
Target Audience Preferences and Behavior:
Understanding the preferences, behaviors, and characteristics of the target audience in
Stockholm is crucial for Uber. By analyzing the demographic, psychographic, and
behavioral traits of their customers in Stockholm, Uber can tailor their promotional mix to
resonate with the speci c needs and preferences of the local market. This could involve
customizing promotional messages and o ers to match the preferred communication
channels, language preferences, and cultural nuances of the target audience in Stockholm,
thereby enhancing the e ectiveness of their promotional campaigns and increasing
customer engagement and retention.
Competitive Landscape and Market Trends:
Keeping a close eye on the competitive landscape and market trends in Stockholm is
essential for Uber to stay ahead in the highly competitive transportation industry. By
monitoring the strategies and promotional activities of competitors in the region, Uber can
identify unique selling points, di erentiation opportunities, and areas for improvement within
their promotional mix. They can adjust their promotional tools to highlight their competitive
advantages, di erentiate their services, and emphasize their commitment to innovation,
safety, and customer satisfaction, thereby positioning themselves strategically in the market
and gaining a competitive edge over other transportation providers in Stockholm.
Regulatory Environment and Technological Advancements:
Uber needs to stay informed about the regulatory environment and technological
advancements in the transportation sector in Stockholm. Compliance with local regulations,
adherence to safety standards, and the integration of innovative technologies are essential
for maintaining a positive brand image and building trust among customers and
stakeholders in the region. By aligning their promotional mix with the evolving regulatory
requirements and technological advancements, Uber can emphasize their commitment to
providing safe, reliable, and technologically advanced transportation solutions in Stockholm,
thereby enhancing their credibility and fostering long-term customer loyalty and trust.
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Question 30
Most organisations like Uber are involved in social media.
1. Explain three (3) implications that social media has for marketers in Uber and how
they impact their business.
Enhanced Brand Visibility and Engagement: Social media boosts brand visibility and fosters
direct engagement with a wider audience, enabling Uber to share updates and promotions, while
also encouraging feedback and participation from users.
b. Customer Feedback and Relationship Management: Social media facilitates prompt
customer feedback and enables e ective management of customer relationships, allowing Uber
to address concerns transparently and build trust and loyalty.
c. Data-Driven Marketing Insights and Targeting: Social media analytics provide valuable
customer insights, aiding Uber in targeted marketing by tailoring strategies and messages to
speci c demographics and locations, thus enhancing campaign e ciency and relevance.
2. Comment on two (2) ways consumers use social media.
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Information and Product Research: Consumers use social media to research products and
services, relying on reviews and user-generated content to evaluate quality and user experiences,
including those related to Uber.
b. Communication and Engagement: Social media serves as a communication platform for
consumers to share experiences, seek recommendations, and engage with brands and peers,
allowing them to express opinions and seek support regarding their interactions with companies
like Uber.
Question 31
There are a number of pricing objectives that Uber could consider.
1. Assuming that Uber has decided to follow a profit-orientated pricing objective,
what would this mean for the pricing of their service.
If Uber adopts a pro t-oriented pricing objective, it would prioritize setting prices
that maximize pro tability. This would entail carefully analyzing the costs associated
with providing their transportation services, including fuel, maintenance, and
operational expenses, and then establishing pricing structures that not only cover
these costs but also generate a substantial pro t margin. Uber would focus on
setting competitive yet pro table fares that re ect the value of their services while
remaining attractive to their customer base in various locations. They would
continually monitor market demand, competitor pricing strategies, and customer
preferences to adjust pricing accordingly and ensure that their pro t objectives are
met.
2. It could be said that Uber uses dynamic pricing. How is this implemented by the
company.
Uber implements dynamic pricing, also known as surge pricing, using an algorithm
that adjusts fares in response to uctuations in demand and supply for their
services. During periods of high demand, such as rush hours or in busy locations,
the fares increase to incentivize more drivers to be available, thus ensuring that
customers can quickly secure rides despite the heightened demand. This pricing
strategy helps balance supply and demand dynamically, enabling Uber to e ciently
manage service availability and meet customer needs during peak hours or in areas
with limited vehicle availability. The dynamic pricing model is communicated to
customers through the app, ensuring transparency and providing them with the
option to accept or decline the higher fares based on their willingness to pay for the
convenience and immediacy of the service.
Question 32
It is critical that the price of a product or service is correctly determined if the
organisation wants to make a profit. Uber will be launching a new scooter service.
How
would they go about setting the right price for this service?
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Cost Analysis: Uber would conduct a comprehensive analysis of the costs associated
with launching and operating the scooter service. This would include assessing the costs of
acquiring the scooters, maintenance, operational expenses, insurance, storage, and any
other relevant overhead costs. By accurately determining the total cost per scooter, Uber
can establish a baseline cost that must be covered to ensure pro tability.
Market Research: Uber would conduct market research to understand the demand for
scooter services in the target area, as well as the pricing strategies of competitors o ering
similar services. This analysis would provide insights into customer preferences, willingness
to pay, and price sensitivity, helping Uber to position its pricing competitively and
attractively in the market.
Value Proposition: Uber would evaluate the unique value proposition of its scooter
service, considering factors such as convenience, accessibility, environmental bene ts, and
time-saving advantages over other transportation options. By understanding the perceived
value of the service from the customer's perspective, Uber can align the pricing with the
perceived bene ts and overall value proposition, ensuring that the price re ects the utility
and convenience of the scooter service.
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Target Market Segmentation: Uber would segment its target market based on factors
such as demographics, geographic location, and consumer preferences. This segmentation
would allow Uber to tailor pricing strategies to speci c customer segments, considering
factors like income levels, mobility needs, and lifestyle preferences. Di erent pricing tiers or
options could be introduced to cater to various customer segments e ectively.
Pricing Strategy and Testing: Based on the cost analysis, market research, value
proposition, and target market segmentation, Uber would develop a comprehensive pricing
strategy for its scooter service. This might involve implementing competitive pricing, valuebased pricing, or penetration pricing strategies, depending on the speci c market dynamics
and business objectives. To ensure the e ectiveness of the pricing strategy, Uber could
conduct pricing tests or pilot programs to gauge customer response and ne-tune the
pricing structure before the full-scale launch of the scooter service. This iterative process
would allow Uber to optimize the pricing to maximize pro tability while remaining
competitive and appealing to its target customers.
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