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How Customers Perceive a Price Is as Important as the Price Itself

Harvard Business Review

Financial asset managers have been out-price-cutting one another in exchange-traded funds in a bid to gain market share. But when managers reduce prices, a fundamental question sometimes goes unasked: Will customers notice and respond as expected? Price wars have broken out in consumer industries around the world.

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Rethinking Sustainability in Light of the EU’s New Circular Economy Policy

Harvard Business Review

They usually run into at least one of four barriers: They lack access to used products, they aren’t able to refurbish or recycle used products in a cost-effective way, their products are not designed with circularity in mind, and their customers discount the value of refurbished or remanufactured products. The Three Approaches.

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Universities Are Missing Out on an Explosive Growth Sector: Their Own

Harvard Business Review

The more astute higher education administrators tell me they can see this happening now: Tuition discount rates are at record highs, and the summer scramble is on to hit admission targets as enrollments drop. They’re quite good at it, on the whole. It’s a game of responsibility hot potato.

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Free Yourself from Conventional Thinking

Harvard Business Review

I recently employed this principle with a large asset management firm. You must slash the price of your product or service by 50%. Customer acquisition has been halted; you need to maximize value from existing customers. Look for unorthodox opportunities. Don''t constrain your thinking to improving only products or services.

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Why Those Guys Won the Economics Nobels

Harvard Business Review

So do not be discouraged to learn that we start with something called the stochastic discount factor , which Campbell describes as the central idea of modern asset-pricing theory. Many lay readers are familiar with John Burr Williams and the dividend discount model , or the discounted value of future cash flows.

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Can Insurance Companies Incentivize Their Customers to Be Healthier?

Harvard Business Review

Vitality provides people with incentives to improve their health through gym memberships, discounts on healthy foods, and other awards based on the achievement of personal health goals, and then rewards members dynamically through lowered annual premiums, free travel, and perks.