What is your opinion of a temperature-sensitive vending machine? How do you think customers would react to a similar? Is this a logical distribution strategy for Coca-Cola to pursue?

A

For a long time now, Coca-Cola Company has been using vending machines as its primary distribution method for its soft drink products. In fact, the lion’s share of revenues for Coca-Cola comes from vending machines. The application of a temperature-sensitive vending machine that charges higher prices for soft drinks when temperatures are high and lower prices when temperatures are low conforms to the model of demand and supply. During hot weather, the usefulness of soft drinks rises, and, therefore, consumers will be willing to pay more for the drinks than during cold weather. Thus, it makes sense to charge higher prices during hot weather.

However, consumers will be most likely to react unfavorably to the new technology as they will perceive Coca-Cola as being insensitive to their needs. It would not be logical for Coca-Cola to pursue this strategy since it could lose some of its customers to competitors charging uniform prices for soft drinks regardless of the weather.

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Academic.Tips. (2022) 'What is your opinion of a temperature-sensitive vending machine? How do you think customers would react to a similar? Is this a logical distribution strategy for Coca-Cola to pursue'. 14 January.

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Academic.Tips. (2022, January 14). What is your opinion of a temperature-sensitive vending machine? How do you think customers would react to a similar? Is this a logical distribution strategy for Coca-Cola to pursue? Retrieved from https://academic.tips/question/what-is-your-opinion-of-a-temperature-sensitive-vending-machine-how-do-you-think-customers-would-react-to-a-similar-is-this-a-logical-distribution-strategy-for-coca-cola-to-pursue/

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Academic.Tips. 2022. "What is your opinion of a temperature-sensitive vending machine? How do you think customers would react to a similar? Is this a logical distribution strategy for Coca-Cola to pursue?" January 14, 2022. https://academic.tips/question/what-is-your-opinion-of-a-temperature-sensitive-vending-machine-how-do-you-think-customers-would-react-to-a-similar-is-this-a-logical-distribution-strategy-for-coca-cola-to-pursue/.

1. Academic.Tips. "What is your opinion of a temperature-sensitive vending machine? How do you think customers would react to a similar? Is this a logical distribution strategy for Coca-Cola to pursue?" January 14, 2022. https://academic.tips/question/what-is-your-opinion-of-a-temperature-sensitive-vending-machine-how-do-you-think-customers-would-react-to-a-similar-is-this-a-logical-distribution-strategy-for-coca-cola-to-pursue/.


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Academic.Tips. "What is your opinion of a temperature-sensitive vending machine? How do you think customers would react to a similar? Is this a logical distribution strategy for Coca-Cola to pursue?" January 14, 2022. https://academic.tips/question/what-is-your-opinion-of-a-temperature-sensitive-vending-machine-how-do-you-think-customers-would-react-to-a-similar-is-this-a-logical-distribution-strategy-for-coca-cola-to-pursue/.

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"What is your opinion of a temperature-sensitive vending machine? How do you think customers would react to a similar? Is this a logical distribution strategy for Coca-Cola to pursue?" Academic.Tips, 14 Jan. 2022, academic.tips/question/what-is-your-opinion-of-a-temperature-sensitive-vending-machine-how-do-you-think-customers-would-react-to-a-similar-is-this-a-logical-distribution-strategy-for-coca-cola-to-pursue/.

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