HOW THE INTERNET AFFECTS PRICE

Pricing has always been one of the most important aspects of product marketing. You could have a great product, but if the price isn’t where it needs to be, your product will not be well-received.
 
Pricing has changed significantly across all industries since the start of the internet. Let’s try to understand just how prices changed.
 

The Advent of Internet Products

Many companies have trouble selling their same product or service over the internet, so instead, they developed internet-specific offerings, like telecommuted services, online consultations, streaming services, and much more. 
 
The creation of these internet products and services mean that companies can have a more ubiquitous offering at a significantly lower price than in-person or in-store transactions.

Price Transparency & Downward Pressure

The internet makes company pricing for the same products transparent for all customers, which increases competitiveness for prices among companies.
 
Generally the internet has forced companies to bring down their prices as low as possible to attract the eyeballs of shoppers.
 
This downward pressure has forced companies to find other methods to increase customer lifetime value, such as using digital marketing for up-sells and cross-sells.

Conclusion

The internet has forced companies to take on different strategies to compete online. Some companies have developed internet products or online services to complement their physical stores. 
 
Companies that have had to adopt e-commerce have leveraged the transparent prices of their competitors to undermine their prices and effectively compete. This has created the phenomenon of downward pressure for all companies given the fact that customers can now price shop.

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