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Annenberg Pubic Policy Center Case 25. 1 A study by the Annenberg Pubic Policy Center investigested one major area of business decision :pricing practices. Specificially,the study addressed consumer knowledge and attitudes about the practices of online retailers adjusting their prices according to customer characteristics,such as how frequency they buy from the retailer. For example ,a website selling cameras charged different prices for the same model depending on whether visitor to the site had previously visited sites that supply price comparisons.

In general,charging different prices is called price discrimination and legal unless it discriminates by race or sex or involes antitrust or price-fixing laws <such as two competitors agreeing to charge certain prices>.

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The Annenberg study consisted of telephone interviews conducted with a sample of 15,000 adult,screened to find persons who had used the internet in the preceding 30 days. The questionnaire gathered demographic data and data about Internet usage.

In addition,the interviewer read 17 statement about basic laws and practices related to price discrimination and the targeting of consumers according to their shopping behaviors. Respondents were asked whether each of these statements was true or false. Case Exhibit 25-1 Exhibit 25. 1-4 summarize some of the results from this study Questions 1.

The information provided here is not detailed enough for a formal report,but assume that you are making an information report in a preliminaly stage of the reporting process.

Which of these findings do you want to emphasize as your main point? Why? 2. Prepare a writtrnt summary of the findings,using at least two table or chart 3. Prepare two tables or charts that would be suitable to accompany an oral presentation of these results. Are they different from the visual aids you prepare for question 2? Why or Why notM Case Exhibit 25. 1-1 Selected Information about the Sample Sex | |Male |48% | |Female |52% | |Online Connection at Home | |Dial up connection only |31% | |Cable modem<with/without dial-up> |18% | |DSL<with/without dial-up> |25% | |Cable or DSL with another method |13% | |Don’t know |4% | |No connection at home |9% | |Self-Ranked Expertise Navigating the Internet | |Beginer |14% | |Intermediate |40% | |Advanced |34% | |Expert |12% | Source: turow,Joseph,Lauren Felfman,and Kimberly Meltzer, “Open to Exploitation:American Shoppers online and Offline, “APPC report,June 2005,p15 dowloaded at http:/annenbergpubicpolicycenter.

org/Downloads/information_and_society/turow_appc_report_web_final. pdf,accessed August 22,2011 Case Exhibit 25. 1-2 Responses to Selected Knowledge Questions Statement |Response | | |True |False |Don’t Know | |Companies today have the ability to follow |80% |8% |12% | |my activity across many sites on the web | | | | |It is legal for an online store to charge |38% |29% |33% | |different people different prices as the | | | | |same time today | | | | |By law a site such as Expedia or Orbitz |37% |32% |31% | |that compares prices on different airlines | | | | |must include the lowest airline prices. | | | |It is legal for offline store to charge |29% |42% |29% | |different people different prices as the | | | | |same time today | | | | |When a website has a privacy policy,It |59% |25% |16% | |means the site will not share my | | | | |information with other website or | | | | |companies | | | | *When the number do not add up to 100%. It is because of a rounding errow Boldface type indicates the correct anwer.

Source: turow,Joseph,Lauren Felfman,and Kimberly Meltzer, “Open to Exploitation:American Shoppers online and Offline, “APPC report,June 2005,p20 dowloaded at http:/annenbergpubicpolicycenter. org/Downloads/information_and_society/turow_appc_report_web_final. pdf,accessed August 22,2011 Case Exhibit 25. 1-3 Respones to select Attitude Question Statement |Response | | |Agree |Disagree |Nature |Don’t know | |It okay if a store charges me | | | | | |price based on what it knows | | | | | |about me |8% |91% |- |1% | | It okay if an online store I |11% |87% |1% |1% | |use charges different prices for| | | | | |the same products during the | | | | | |same hour | | | | | |It would bother me to learn that|76% |22% |1% |1% | |other people pay less than I do | | | | | |for the same product | | | | | |It would bother me websites I |57% |41% |2% |1% | |shop at keep detailed vior | | | | | |buying beha | | | | | |It okay if a store I shop at |50% |47% |2% |1% | |frequency use information it has| | | | | |about me to create a picture of | | | | |me that improves the services it| | | | | |provide for me. | | | | | *When the number do not add up to 100%. It is because of a rounding errow Boldface type indicates the correct anwer.

Source: turow,Joseph,Lauren Felfman,and Kimberly Meltzer, “Open to Exploitation:American Shoppers online and Offline, “APPC report,June 2005,p22 dowloaded at http:/annenbergpubicpolicycenter. org/Downloads/information_and_society/turow_appc_report_web_final. pdf,accessed August 22,2011

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