Analyzing Managerial Decisions: iTunes Music Pricing"
The iTunes case on pricing is an interesting case that has a lot of background and a lot of things to think about. Apple has pressure from the producers of the music to offer their music at a market price, this was not necessary the case when Apple had sort of a ‘monopoly' over the digital download music market. Given this change, Apple has to listen more to what the market feels the price of a song should be; therefore, as the songs recent demand increases, the price for that song should increase. I think that this is what we currently see today with most pricing policies on downloadable music, but the case asks you to really put some thought into how these pricing changes were actually implemented and why they were implemented.
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