1. Price What is price ? – Money – Data exchanged – advertisements

2. Early Internet Land grab strategy: price below marginal cost Gain first mover advantage and acquire lock-in

3. Price Transparency Use of search and shopping bots to compare prices Prices tend to marginal cost ? – Generate brand loyalty – Create lock-in

4. Price point of Free Advertising supported: content, software w/ adware Cost structure: zero marginal cost Free now, pay later w/ lock-in (Skype)

5. Price Opaqueness Price discrimination: Amazon example Coupons: Dealcatcher “Different” product offerings in different countries

6. Dynamic Pricing Traditional pricing systems Auction pricing – Traditional – Reverse auctions – Lifecycle “management”

7. And finally… Channel conflict ? Online versus offline pricing Product bundling and pricing Payment systems: paypal Micropayments … future ? Online payments for traditional services