Is Selling Coke Through Interactive Vending Machines a Good or Bad Idea? Why?

1. Is selling Coke through interactive vending machines a good or bad idea? Why?

There are different opinions about it on the news that were published after the interview of the Coca Cola CEO’s comment on a vending machine sets prices according to weather. Some people says that the market goes to that trend and many sectors has already making this price discrimination so why not Coca Cola but some others critics that.

People who think this is a good idea, thinks from the economics perspective and believes that this innovation will increase the profits of Coca Cola so will positively contribute to the economy. For example, the reporter from About.com (Exhibit 4) suggests people to invest more on Coca Cola if this technology comes. He says there are already many price discrimination strategies around us and many of us even not noticing them. As the vending machine technology is improving, this is the next step to maximize the profits.

There are also people who critics this technology and even making jokes on them. A reporter from The Philadelphia Inquirer (Exhibit 3) supports the idea that the Coca Cola’s this innovation has nothing good for the society but only for their profits. This behavior, according to him, is a very selfish and ugly one. He asks if you see a person dying from being thirsty, would you ask a C-note for a glass of water. So, he thinks that making vending machines sensible for the temperature to increase prices is non-sense and in the next step, the machines may even make negotiations with the consumers, which is not a fair trade.

An Article published in The New York Times (Exhibit 1) announces this innovation and mentions about the different views as well. Some people think that this movement is nothing different than extracting the golden goose but some people thinks that the next step on vending machine technology might be this one as there are already many innovations around the world. According to them, there is some application in Japan for example. Although there are some supports for Coca Cola’s this movement, their competitor Pepsi used the advantage of controversy people and told that Pepsi would never do that as they care for their customer and would like to make easier to buy Coke not harder.

2. What is Coke? Does this change across consumers?

Coke is a product that consumers buy whenever they would like to enjoy a drink or as a side-dish etc. Although there are fans for its products, it is not an essential need that people would not live without it. Also, there are competitors of Coca Cola and they produce the same product with just a little different taste. The question is, would the consumer is willing to pay much more for that difference or to enjoy a drink.

Coca Cola’s new vending machines would make some people very upset and think like the reporter in Exhibit 3 who supports the idea