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Question
Jeff Bezos, Amazon’s CEO, made headlines when he announced that the company would be selling the Kindle at cost. When a Kindle is purchased, Amazon does not make a profit. Amazon figured out that selling e-readers was just an entry point. Where the company turns a very large profit is when it sells e-books to Kindle owners. The company’s strategy is therefore to have the highest market share possible in e-readers so that it can then dominate e-book sales and capture most of the profits in that category. Identify the element of marketing mix here.
Options
Price
Promotion
Place
Product
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Solution
Price.
Explanation:
Amazon used a pricing strategy by selling the Kindle at cost to increase market share and sell more e-books later. Therefore, the marketing mix element is price.
