Category: Uncategorized
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Why “free” is a wise price for Apple GenAI
Apple made its long-anticipated foray into generative artificial intelligence (GenAI) this week when it launched “Apple Intelligence,” which it described as a “personal intelligence system” for its portfolio of devices. For the moment, Apple will offer this system for free. This week’s newsletter looks at the role that “free” can play in the market for…
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The Insurance “Canary” in the Climate “Coal Mine”
Significant price changes may represent much more than short-term tactical adjustments in a market. Sometimes, they are ominous signals that a market is facing fundamental problems that may require radical solutions if buyers, sellers, and other stakeholders do not heed the warnings. The current market for homeowners insurance in the United States might be sending…
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Japan’s Tourist Surge: Can Differentiated Pricing Help Control the Overflow?
Japan has too many tourists. Is differentiated pricing the solution? This article reports that Japan attracted an “unprecedented” 25 million tourists in 2023, as travelers took advantage of a sharp decline in the yen over the last five years. That’s why some Japanese tourist attractions have implemented significantly higher prices for tourists than for domestic…
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How Walmart is rethinking the price tag
Dear Friends, In the latest edition of the Game Changer Expert Interview Series, BCG’s Javier Anta Callersten describes how advances in data and algorithms are enabling companies to make the transition from the Uniform Game to the Dynamic Game. You can watch the full video here. In case you missed them, here are the other posts since last week’s newsletter. Ham, bacon, and…
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How Temu Uses Psychological Hacks to Encourage Overspending
Is the popular e-commerce site Temu a sophisticated experiment in balancing supply and demand? Or is it a combination of a fun treasure hunt with games of chance? This article looks at some of the psychological effects that seem to drive the site’s growth and popularity, with low prices being only one factor. See the…
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Professional Pricing Society Keynote
In: Power Game
Jean-Manuel Izaret (JMI), the Global Leader of BCG’s Marketing, Sales & Pricing Practice, delivers a keynote speech at the 2023 Professional Pricing Society (PPS) Conference in Atlanta. He shares insights from the book “Game Changer: How Strategic Pricing Shapes Businesses, Markets, and Society” and discusses the importance of pricing in driving business growth. JMI highlights…
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Reddit adds ads
Reddit is opening up a new revenue stream by testing dynamic product ads on its popular social media platform. Launched about a month ago, the new initiative automatically places ads into active customer discussions about a potential product purchase. Their initial tests showed that the dynamic ads could almost double an advertiser’s return on advertising…
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How GenAI Makes Messy Data Useful
Dear Friends, In the latest edition of the Game Changer Expert Interview Series, BCG’s Rohan Kadakia explores how companies successfully make the transition from the Cost Game to the Value Game. Rohan identifies the challenges and the key factors that contribute to sustained long-term success in this transition. You can watch the full video here. In case you missed them, here are some…
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Apple Vision Pro use cases
Now that Apple’s Vision Pro headset has been available for a week, the focus of the discussion has shifted from its price point to another fundamental question: how will it create value? Countless naysayers have already said that the device will flop because there aren’t killer applications or use cases to justify anything close…
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Why Your Business Needs a Pricing Strategy—Not Just Tactics
🎙️ Just Released: My Podcast Conversation on ‘Game Changer’ and Modern Pricing Strategies 📘 I’m thrilled to share my discussion with Mark Gandy and the CFO Bookshelf Podcast is now available to listen. It was a fantastic discussion covering our new book “Game Changer”, and a deep dive on the art of strategic pricing, exploring…
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Corporate America tests limits of pricing power
Between the lines in the intriguing New York Times article below, I see two critical points about why the recent wave of inflation occurred and what will happen in 2024 and beyond. Recent inflation reflects a long overdue price correction, not a collision of macroeconomic forces. Prices were trapped in the opposite of a bubble,…
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The Pricing spotlight: pricing strategy
In: Pricing Strategy
Daniel Meyer has a fun Pricing Spotlight series that is worth following. He asks simple open-ended questions, like good interviewers do, allowing for diverse responses. I am grateful to participate this week and share some views. Enjoy! Daniel Meyer Monetization & Pricing – Sustainable Growth Through Pricing 💰 And Effective Product Decisions 🚀 sofatutor |…