economy questions

Itunes Music Pricing

Question 1: Define the Organizational Architecture in Apple Inc. Explain in detail the

corporate governance in Apple Inc.

Question 2: Provide an argument for why a more variable pricing policy might increase

the sales revenue from Apple’s Music Store (compared to the flat pricing policy).

Question 3: Why do you think Apple moved from one to three price points in 2009?

What types of songs do you think Apple tends to sell at the lower prices?

Question 4: Discuss other potential pricing policies that might increase the revenue

from Music Store sales.

Question 5: What are the risks and potential costs of implementing more sophisticated

pricing schemes for the downloaded music? Explain.

Question 6: Is Apple’s pricing objective to maximize the revenue it receives from the

sales of downloaded music? Is this the objective of the major record companies?

Explain.

Question 7: Do you think that Apple’s ability to control the pricing of downloaded music

is likely to change in the future? Explain.