Internet Application Questions

Chapter 13

1. Visit the following web site and identify which pricing strategy is being used. Justify.
   
   http://www.sharperimage.com
   
   
2. There has been much written/said about the ongoing browser wars between Netscape and Microsoft. Netscape prices its browser close to $50 while Microsoft distributes it at no charge. Visit their Web sites and answer the following questions:
   Netscape was first in the marketplace with its browser - what are the associated advantages of being a market pioneer?
   Why is Microsoft denying itself this revenue stream?
   How would you characterize this pricing strategy?
   
   http://www.netscape.com
   http://www.microsoft.com
   
   
3. It has been widely reported that the major airlines have begun to offer some spectacular deals to their Web based customers. Surf the web to price a trip of your choice from the following web sites. Why are the airlines using this strategy? (Hint: reviewing the Susan Greco article in the current events section will provide you some insights.
   
   http://www.iflyswa.com
   http://www.twa.com
   http://www.ual.com
   http://www.amrcorp.com