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Wei Ke, a partner at consultants Simon-Kucher, discusses the psychology behind customers' choices, including the appeal of metal credit cards, the willingness to pay $450 a year for a card and the paralysis of too many options.
Less than 10 months after launch, Keurig Kold has officially lost its fizz. Keurig, which built its empire on single-serve, pod-based beverages, just announced its discontinuation of Kold, the expensive home soda machine no one wanted. But its exorbitant cost – $370 dollars – isn’t the only hurdle. Soda consumption in the U.S. is on the decline, falling to a 30-year low.
The odds are stacked mightily against any company that launches a new product or service. Between 65% and 75% of new offerings fail outright or miss their revenue or profit goals, depending on whose research you look at. And the tab of those failures is hefty — $260 billion in the U.S. alone in 2010, according to University of Texas at Austin professor Rob Adams.
Global Pricing Study 2016: A remarkable 93 percent of companies worldwide acknowledge the impact of digitalization, yet don't know where to start when it comes to addressing the issue. One thing is clear, only with the right price strategy will companies be able to overcome the challenges of this mega trend.