Results from a consumer behavior experiment on customer acceptance of paying for extras. We propose a reference price based solution to managing consumer behavior.
Blume's internal research team has facilitated this survey to enable a small cohort of startups in the mobility / work spaces to understand how consumer behaviour will change post lockdown. This will enable them to be better equipped to serve the Indian Consumer.
Cart abandonment strategies and how the Irish compareAdrian O'Farrell
With Cart Abandonment rates averaging around 70%, how do e-commerce sites best deal with it? We take you through best practice, look at how many sites are achieving this, and how Irish sites compare to their international competitors.
1) The document describes an experiment that tested whether survey responses about the influence of friends on purchases are subject to anchoring biases.
2) The experiment randomly assigned respondents to polls that provided either a low (37%) or high (75%) anchor for the percentage of purchases influenced by friends from a previous survey.
3) Chi-square tests found no statistically significant difference between the responses from the low and high anchor polls, indicating that the responses were randomly picked between 0-50% and not influenced by the anchors provided.
The document discusses local loop unbundling (LLU), which allows multiple telecom operators to use connections from telephone exchanges to customer premises. LLU is required to overcome monopolies and allow new entrants access to infrastructure. Benefits include competitive prices, new technologies, and customer choice. Regulators face challenges in implementation including rapid market changes, innovation, and disputes over costs. Alternatives to LLU include local resale of wholesale services, local interconnect between networks, and new entrants building their own local loop infrastructure.
Analysis of Distribution System Operator Unbundlingdavidtrebolle
One of the key regulatory changes as consequence of the liberalisation of the electricity industry has been the unbundling regime. This organisation model aims to separate the potentially competitive core activities from the natural monopoly distribution and transmission activities and other coordination activities like system and market operation.
Since then, European Directives oblige Member States to adopt unbundling requirements in the electricity sector. In particular since the European Commission proposed the option of full ownership unbundling for Transmission System Operators (TSO), there is some uncertainty around Distribution System Operators (DSO) unbundling.
In light of all this changes, this Master Thesis reviews the regulatory and legislative context for unbundling in Distribution System Operators, in both Europe and Spain.
Besides, identifies the current performance of distribution companies, mainly in terms of distributed power, customers served, market influence and compliance of unbundling requirements. Moreover, analyses how some particular countries have experienced the implementation of unbundling regime. All this experiences reveal a still clear insufficient level of Distribution System Operators unbundling and as a consequence a seriously limit on network operation effectiveness and market well-functioning.
In addition, a regulatory methodology is proposed for allowing Regulatory Authorities to monitor the unbundling process. This approach analyses the performance of current unbundling regime in the distribution business and provides regulatory changes when needed. A set of Key Performance Indicators (KPIs) and a benchmarking technique (DataEnvelopment Analysis-DEA) are the tools identified to measure the companies’ behaviour
towards their organisation model. These tools provide regulators an acknowledgement of the performance of Distribution System Operators and rank the companies according to efficiency ratios.
To test the robustness of the methodology designed, a case study is carried out. In particular, this practical survey aims to contribute to the discussion on current model of
unbundling in Spanish electricity distributors in comparison with other European distributors with both similar and different unbundling regimes. In this study, 10 Distribution System Operators, from 6 European Member States, are benchmarked by using DEA model. The results or technical efficiency scores rank distribution companies
according to efficient frontier firms. The main two findings rated Legal Unbundling DSOs slightly more efficient in terms of costs, and Ownership Unbundling DSOs remarkable more efficient in terms of market orientation.
Anchor pricing and reference pricing are strategies used by online retailers to influence customers' perceptions of value. Anchor pricing involves setting a high initial "anchor" price to make subsequent discounted prices seem like a good deal. Reference pricing compares a product's price to competitors' or a previously advertised higher price to seem lower. Online retailers can use tiered pricing, display competitors' prices, or set artificially high reference prices followed by discounts to take advantage of these effects and guide customers toward desired purchase choices and prices.
This document outlines examples of how industries have unbundled and bundled products and services over multiple phases. It provides examples of how coffee, music, newspapers, search, telecommunications, gaming, and personal devices have evolved from offering single basic products or services to increasingly bundled or customized offerings with more features and functionality. The examples show industries starting with one main product or service and then expanding to offer individualized or personalized components that can be mixed and matched by customers.
Blume's internal research team has facilitated this survey to enable a small cohort of startups in the mobility / work spaces to understand how consumer behaviour will change post lockdown. This will enable them to be better equipped to serve the Indian Consumer.
Cart abandonment strategies and how the Irish compareAdrian O'Farrell
With Cart Abandonment rates averaging around 70%, how do e-commerce sites best deal with it? We take you through best practice, look at how many sites are achieving this, and how Irish sites compare to their international competitors.
1) The document describes an experiment that tested whether survey responses about the influence of friends on purchases are subject to anchoring biases.
2) The experiment randomly assigned respondents to polls that provided either a low (37%) or high (75%) anchor for the percentage of purchases influenced by friends from a previous survey.
3) Chi-square tests found no statistically significant difference between the responses from the low and high anchor polls, indicating that the responses were randomly picked between 0-50% and not influenced by the anchors provided.
The document discusses local loop unbundling (LLU), which allows multiple telecom operators to use connections from telephone exchanges to customer premises. LLU is required to overcome monopolies and allow new entrants access to infrastructure. Benefits include competitive prices, new technologies, and customer choice. Regulators face challenges in implementation including rapid market changes, innovation, and disputes over costs. Alternatives to LLU include local resale of wholesale services, local interconnect between networks, and new entrants building their own local loop infrastructure.
Analysis of Distribution System Operator Unbundlingdavidtrebolle
One of the key regulatory changes as consequence of the liberalisation of the electricity industry has been the unbundling regime. This organisation model aims to separate the potentially competitive core activities from the natural monopoly distribution and transmission activities and other coordination activities like system and market operation.
Since then, European Directives oblige Member States to adopt unbundling requirements in the electricity sector. In particular since the European Commission proposed the option of full ownership unbundling for Transmission System Operators (TSO), there is some uncertainty around Distribution System Operators (DSO) unbundling.
In light of all this changes, this Master Thesis reviews the regulatory and legislative context for unbundling in Distribution System Operators, in both Europe and Spain.
Besides, identifies the current performance of distribution companies, mainly in terms of distributed power, customers served, market influence and compliance of unbundling requirements. Moreover, analyses how some particular countries have experienced the implementation of unbundling regime. All this experiences reveal a still clear insufficient level of Distribution System Operators unbundling and as a consequence a seriously limit on network operation effectiveness and market well-functioning.
In addition, a regulatory methodology is proposed for allowing Regulatory Authorities to monitor the unbundling process. This approach analyses the performance of current unbundling regime in the distribution business and provides regulatory changes when needed. A set of Key Performance Indicators (KPIs) and a benchmarking technique (DataEnvelopment Analysis-DEA) are the tools identified to measure the companies’ behaviour
towards their organisation model. These tools provide regulators an acknowledgement of the performance of Distribution System Operators and rank the companies according to efficiency ratios.
To test the robustness of the methodology designed, a case study is carried out. In particular, this practical survey aims to contribute to the discussion on current model of
unbundling in Spanish electricity distributors in comparison with other European distributors with both similar and different unbundling regimes. In this study, 10 Distribution System Operators, from 6 European Member States, are benchmarked by using DEA model. The results or technical efficiency scores rank distribution companies
according to efficient frontier firms. The main two findings rated Legal Unbundling DSOs slightly more efficient in terms of costs, and Ownership Unbundling DSOs remarkable more efficient in terms of market orientation.
Anchor pricing and reference pricing are strategies used by online retailers to influence customers' perceptions of value. Anchor pricing involves setting a high initial "anchor" price to make subsequent discounted prices seem like a good deal. Reference pricing compares a product's price to competitors' or a previously advertised higher price to seem lower. Online retailers can use tiered pricing, display competitors' prices, or set artificially high reference prices followed by discounts to take advantage of these effects and guide customers toward desired purchase choices and prices.
This document outlines examples of how industries have unbundled and bundled products and services over multiple phases. It provides examples of how coffee, music, newspapers, search, telecommunications, gaming, and personal devices have evolved from offering single basic products or services to increasingly bundled or customized offerings with more features and functionality. The examples show industries starting with one main product or service and then expanding to offer individualized or personalized components that can be mixed and matched by customers.
11. pricing products pricing considerations and strategiesabc
1) The document discusses various pricing strategies for new products, including market skimming which sets a high initial price to maximize revenues from early adopters, and market penetration which sets a low initial price to attract a large number of customers quickly.
2) It also covers strategies for pricing a product mix, such as setting price steps between different products or optional accessories to maximize overall profits. Discounts and allowances are also discussed to incentivize customers or channel members.
3) Psychological pricing tactics are mentioned, where price is used as a signal for quality even when customers cannot directly assess it, through reference prices, odd pricing, or temporary promotional pricing. The challenges of creating "deal-prone" customers through
A Simple Tutorial on Conjoint and Cluster AnalysisIterative Path
A simple tutorial to show conjoint analysis and cluster analysis. please send your feedback, this version is still rough and I would like to iteratively improve it so it is useful for most.
The document discusses various offensive and defensive competitive strategies that multinational companies use. Offensive strategies include direct attacks, end-runs, and preemptive strikes aimed at competitors' weaknesses. Defensive strategies seek to lessen risk of attack and blunt any attacks by blocking avenues of offense and preparing strong counterattacks. Both types of strategies aim to achieve or maintain competitive advantage in the market.
Pricing Strategy - A Focus On Profit, Not Salesguest55380c
This document discusses pricing strategy and provides guidance on setting prices. It covers:
1) Setting prices to increase profits, attract new customers, and maintain existing customers.
2) Considering competition, costs, customers, and industry customs when setting prices.
3) Common pricing models like cost-based, value-based, flat-rate, and dynamic pricing.
4) Using bundling to provide incentives and disguise prices.
5) Segmenting customers based on attributes to set personalized prices.
6) Developing a pricing plan tailored to target market segments.
Description of the strategy (business model) of Low Cost Carrier Ryanair. Focussing on the value proposition, value architecture, revenue model and corporate culture and values.
Ryanair was founded in 1985 and has grown to become one of Europe's largest airlines. It operates over 1,600 daily flights across 1,600 routes to 180 destinations. Ryanair's strategy has been to offer low fares through cost containment and operational efficiencies. While profitability remains core, Ryanair's vision and mission have evolved to also focus on improving customer service and experience. Ryanair faces competition from other low-cost carriers like EasyJet but aims to strengthen its position through continued growth and defending its low-cost model.
Ryanair began in 1985 operating a small 15-seat aircraft for scheduled passenger flights between Waterford and London. Through the 1990s, Ryanair grew but costs were rising. In response, Ryanair reorganized as a no-frills airline, reorganized its fleet and pricing structure. Since then, Ryanair has continued expanding its route network while keeping costs low through measures like charging for services that were previously free. However, this strategy has also led to criticism and conflicts with airports and governments over fees.
The document discusses pricing strategies for rural markets in India. It notes that affordability is determined by income and price. It then outlines various internal and external factors that influence pricing, including costs, objectives, customers, suppliers and competitors. It describes several pricing strategies used by companies to attract rural consumers with lower incomes, such as low price points, no-frills products, refill/reusable packaging, credit facilities, discounts and value engineering.
Entrepreneur 3: Marketing Plan, Strategies, Distribution and ChannelsBernard Leong
The 3rd lecture focus on the marketing plan which constitues part of the business plan with an introduction to the concept of marketing, strategies, distribution and channels. Another important thing that we want to inculcate the use of social meda for start-ups and how this might help to spread the message.
Dove launched a marketing campaign called "Campaign for Real Beauty" to promote positive body image. The campaign features ordinary women rather than models and aims to build women's self-esteem. Dove's parent company Unilever generates over €51 billion in annual sales from brands in over 190 countries. Market research shows most women are dissatisfied with their appearance and Dove aims to address this issue through advertising, websites, billboards, and panel discussions to promote its message.
- More than half of the world's population now uses the internet, with global internet users growing 8% year-over-year. Mobile internet and social media usage are also growing significantly.
- Social media users grew over 20% in the past year to over 2.5 billion active users monthly. Mobile social media use in particular saw 30% growth.
- The report provides statistics on internet, social media, and mobile usage globally and by region, finding continued growth in connectivity and usage around the world.
David Hand (Professor Emeritus and Senior Research Investigator, Department of Mathematics,
Faculty of Natural Sciences, Imperial College London.)
ABSTRACT: Science progresses through an iterative process of formulating theories and comparing
them with empirical real-world data. Different camps of scientists will favour different
theories, until accumulating evidence renders one or more untenable. Not unnaturally,
people become attached to theories. Perhaps they invented a theory, and kudos arises
from being the originator of a generally accepted theory. A theory might represent a
life's work, so that being found wanting might be interpreted as failure. Perhaps
researchers were trained in a particular school, and acknowledging its shortcomings is
difficult. Because of this, tensions can arise between proponents of different theories.
The discipline of statistics is susceptible to precisely the same tensions. Here, however,
the tensions are not between different theories of "what is", but between different
strategies for shedding light on the real world from limited empirical data. This can be in
the form of how one measures discrepancy between the theory's predictions and
observations. It can be in the form of different ways of looking at empirical results. It can
be, at a higher level, because of differences between what is regarded as important in a
particular context. Or it can be for other reasons.
Perhaps the most familiar example of this tension within statistics is between different
approaches to inference. However, there are many other examples of such tensions.
This paper illustrates with several examples. We argue that the tension generally arises
as a consequence of inadequate care being taken in question formulation. That is,
insufficient thought is given to deciding exactly what one wants to know - to determining
"What is the question?".
The ideas and disagreements are illustrated with several examples.
- The document presents a case study for an airline, A+Airline Co., assessing whether it should switch from accepting both cash and credit cards for in-flight purchases to only accepting credit cards like its main competitor Gamma Airline.
- Key factors to analyze include changes in revenues from losing some cash-only customers, changes in costs by eliminating cash management overhead, and improvements to cash flow and working capital from faster credit card payments.
- Calculations show the revenue loss from losing cash customers would be offset by savings from eliminating cash management costs. Additionally, qualitative benefits include improved customer satisfaction and cash flow by receiving payments 30 days sooner with credit cards only.
This document discusses several legal and ethical issues related to pricing, including:
1) Unethical pricing strategies like price fixing and predatory pricing that aim to eliminate competition.
2) The concept of price discrimination, where different prices are charged to different customer groups.
3) Factors to consider when setting new product prices, such as costs, perceived value, and competitive positioning.
4) Tactics for fine-tuning prices, including discounts, geographic pricing, and bundling products.
Retaining Customers in a World of ChoiceEchoMarketing
This consumer research report from Echo Managed Services examines customer switching behaviours and attitudes across multiple sectors. It also looks at which sectors are getting the customer experience during the switching process right and wrong.
The document provides information about an economics revision workshop, including sessions on how markets work and elasticities, market failure and government intervention, measuring UK economic performance, demand and supply side policies, and policy conflicts. It gives exam advice on answering questions and provides a glossary of key macroeconomic terms.
This document discusses consumer choice theory and the concept of utility maximization. It provides information on indifference curves, budget constraints, and how consumers attempt to maximize their utility given their budget. It also contains examples of calculating utility maximization when consumers can choose between two goods, and discusses the assumptions of utility maximization including scarcity, preferences, and allocating spending so the marginal utility per dollar is equal for all goods.
Most Popular College Application Essay TopicsDawn Williams
The document provides instructions for creating an account and submitting assignment requests on the HelpWriting.net website. It outlines a 5-step process: 1) Create an account with an email and password. 2) Complete a form with assignment details, sources, and deadline. 3) Review bids from writers and choose one. 4) Review the completed paper and authorize payment. 5) Request revisions until satisfied. The site promises original, high-quality work with refunds for plagiarism.
What Happens to Ratings When Both Sides Multihome? The Impact of Vertical Spi...Aleksi Aaltonen
Presentation at the EU Digital Platform Research Network (EU-DPRN) Summit on 9 June 2023 in Milan, Italy. I talk about how competition between platforms can drive ratings inflation under certain conditions. The presentation is based on a paper coauthored with Yulia Vorotyntseva, Subodha Kumar and Paul Pavlou.
This chapter discusses pricing strategies and concepts. It begins by explaining how the internet affects pricing through individualization and interactivity. It then covers the economics of pricing including demand curves, costs, and profit maximization. The chapter explores basic strategies like everyday low pricing and promotions. It also examines dynamic strategies such as auctions and algorithms. Additionally, the chapter discusses responding to competitor price changes, implementing prices across customer relationships, and concludes with an example of pricing on eBay.
11. pricing products pricing considerations and strategiesabc
1) The document discusses various pricing strategies for new products, including market skimming which sets a high initial price to maximize revenues from early adopters, and market penetration which sets a low initial price to attract a large number of customers quickly.
2) It also covers strategies for pricing a product mix, such as setting price steps between different products or optional accessories to maximize overall profits. Discounts and allowances are also discussed to incentivize customers or channel members.
3) Psychological pricing tactics are mentioned, where price is used as a signal for quality even when customers cannot directly assess it, through reference prices, odd pricing, or temporary promotional pricing. The challenges of creating "deal-prone" customers through
A Simple Tutorial on Conjoint and Cluster AnalysisIterative Path
A simple tutorial to show conjoint analysis and cluster analysis. please send your feedback, this version is still rough and I would like to iteratively improve it so it is useful for most.
The document discusses various offensive and defensive competitive strategies that multinational companies use. Offensive strategies include direct attacks, end-runs, and preemptive strikes aimed at competitors' weaknesses. Defensive strategies seek to lessen risk of attack and blunt any attacks by blocking avenues of offense and preparing strong counterattacks. Both types of strategies aim to achieve or maintain competitive advantage in the market.
Pricing Strategy - A Focus On Profit, Not Salesguest55380c
This document discusses pricing strategy and provides guidance on setting prices. It covers:
1) Setting prices to increase profits, attract new customers, and maintain existing customers.
2) Considering competition, costs, customers, and industry customs when setting prices.
3) Common pricing models like cost-based, value-based, flat-rate, and dynamic pricing.
4) Using bundling to provide incentives and disguise prices.
5) Segmenting customers based on attributes to set personalized prices.
6) Developing a pricing plan tailored to target market segments.
Description of the strategy (business model) of Low Cost Carrier Ryanair. Focussing on the value proposition, value architecture, revenue model and corporate culture and values.
Ryanair was founded in 1985 and has grown to become one of Europe's largest airlines. It operates over 1,600 daily flights across 1,600 routes to 180 destinations. Ryanair's strategy has been to offer low fares through cost containment and operational efficiencies. While profitability remains core, Ryanair's vision and mission have evolved to also focus on improving customer service and experience. Ryanair faces competition from other low-cost carriers like EasyJet but aims to strengthen its position through continued growth and defending its low-cost model.
Ryanair began in 1985 operating a small 15-seat aircraft for scheduled passenger flights between Waterford and London. Through the 1990s, Ryanair grew but costs were rising. In response, Ryanair reorganized as a no-frills airline, reorganized its fleet and pricing structure. Since then, Ryanair has continued expanding its route network while keeping costs low through measures like charging for services that were previously free. However, this strategy has also led to criticism and conflicts with airports and governments over fees.
The document discusses pricing strategies for rural markets in India. It notes that affordability is determined by income and price. It then outlines various internal and external factors that influence pricing, including costs, objectives, customers, suppliers and competitors. It describes several pricing strategies used by companies to attract rural consumers with lower incomes, such as low price points, no-frills products, refill/reusable packaging, credit facilities, discounts and value engineering.
Entrepreneur 3: Marketing Plan, Strategies, Distribution and ChannelsBernard Leong
The 3rd lecture focus on the marketing plan which constitues part of the business plan with an introduction to the concept of marketing, strategies, distribution and channels. Another important thing that we want to inculcate the use of social meda for start-ups and how this might help to spread the message.
Dove launched a marketing campaign called "Campaign for Real Beauty" to promote positive body image. The campaign features ordinary women rather than models and aims to build women's self-esteem. Dove's parent company Unilever generates over €51 billion in annual sales from brands in over 190 countries. Market research shows most women are dissatisfied with their appearance and Dove aims to address this issue through advertising, websites, billboards, and panel discussions to promote its message.
- More than half of the world's population now uses the internet, with global internet users growing 8% year-over-year. Mobile internet and social media usage are also growing significantly.
- Social media users grew over 20% in the past year to over 2.5 billion active users monthly. Mobile social media use in particular saw 30% growth.
- The report provides statistics on internet, social media, and mobile usage globally and by region, finding continued growth in connectivity and usage around the world.
David Hand (Professor Emeritus and Senior Research Investigator, Department of Mathematics,
Faculty of Natural Sciences, Imperial College London.)
ABSTRACT: Science progresses through an iterative process of formulating theories and comparing
them with empirical real-world data. Different camps of scientists will favour different
theories, until accumulating evidence renders one or more untenable. Not unnaturally,
people become attached to theories. Perhaps they invented a theory, and kudos arises
from being the originator of a generally accepted theory. A theory might represent a
life's work, so that being found wanting might be interpreted as failure. Perhaps
researchers were trained in a particular school, and acknowledging its shortcomings is
difficult. Because of this, tensions can arise between proponents of different theories.
The discipline of statistics is susceptible to precisely the same tensions. Here, however,
the tensions are not between different theories of "what is", but between different
strategies for shedding light on the real world from limited empirical data. This can be in
the form of how one measures discrepancy between the theory's predictions and
observations. It can be in the form of different ways of looking at empirical results. It can
be, at a higher level, because of differences between what is regarded as important in a
particular context. Or it can be for other reasons.
Perhaps the most familiar example of this tension within statistics is between different
approaches to inference. However, there are many other examples of such tensions.
This paper illustrates with several examples. We argue that the tension generally arises
as a consequence of inadequate care being taken in question formulation. That is,
insufficient thought is given to deciding exactly what one wants to know - to determining
"What is the question?".
The ideas and disagreements are illustrated with several examples.
- The document presents a case study for an airline, A+Airline Co., assessing whether it should switch from accepting both cash and credit cards for in-flight purchases to only accepting credit cards like its main competitor Gamma Airline.
- Key factors to analyze include changes in revenues from losing some cash-only customers, changes in costs by eliminating cash management overhead, and improvements to cash flow and working capital from faster credit card payments.
- Calculations show the revenue loss from losing cash customers would be offset by savings from eliminating cash management costs. Additionally, qualitative benefits include improved customer satisfaction and cash flow by receiving payments 30 days sooner with credit cards only.
This document discusses several legal and ethical issues related to pricing, including:
1) Unethical pricing strategies like price fixing and predatory pricing that aim to eliminate competition.
2) The concept of price discrimination, where different prices are charged to different customer groups.
3) Factors to consider when setting new product prices, such as costs, perceived value, and competitive positioning.
4) Tactics for fine-tuning prices, including discounts, geographic pricing, and bundling products.
Retaining Customers in a World of ChoiceEchoMarketing
This consumer research report from Echo Managed Services examines customer switching behaviours and attitudes across multiple sectors. It also looks at which sectors are getting the customer experience during the switching process right and wrong.
The document provides information about an economics revision workshop, including sessions on how markets work and elasticities, market failure and government intervention, measuring UK economic performance, demand and supply side policies, and policy conflicts. It gives exam advice on answering questions and provides a glossary of key macroeconomic terms.
This document discusses consumer choice theory and the concept of utility maximization. It provides information on indifference curves, budget constraints, and how consumers attempt to maximize their utility given their budget. It also contains examples of calculating utility maximization when consumers can choose between two goods, and discusses the assumptions of utility maximization including scarcity, preferences, and allocating spending so the marginal utility per dollar is equal for all goods.
Most Popular College Application Essay TopicsDawn Williams
The document provides instructions for creating an account and submitting assignment requests on the HelpWriting.net website. It outlines a 5-step process: 1) Create an account with an email and password. 2) Complete a form with assignment details, sources, and deadline. 3) Review bids from writers and choose one. 4) Review the completed paper and authorize payment. 5) Request revisions until satisfied. The site promises original, high-quality work with refunds for plagiarism.
What Happens to Ratings When Both Sides Multihome? The Impact of Vertical Spi...Aleksi Aaltonen
Presentation at the EU Digital Platform Research Network (EU-DPRN) Summit on 9 June 2023 in Milan, Italy. I talk about how competition between platforms can drive ratings inflation under certain conditions. The presentation is based on a paper coauthored with Yulia Vorotyntseva, Subodha Kumar and Paul Pavlou.
This chapter discusses pricing strategies and concepts. It begins by explaining how the internet affects pricing through individualization and interactivity. It then covers the economics of pricing including demand curves, costs, and profit maximization. The chapter explores basic strategies like everyday low pricing and promotions. It also examines dynamic strategies such as auctions and algorithms. Additionally, the chapter discusses responding to competitor price changes, implementing prices across customer relationships, and concludes with an example of pricing on eBay.
This summary provides the key details from the JetBlue research paper in 3 sentences:
JetBlue has experienced revenue growth from 2009 to 2011, though expenses also increased resulting in a decline in net income. Fuel costs being the largest expense increased along with rising fuel prices, and JetBlue focused on growing key markets like Boston and the Caribbean which now makes up 25% of their capacity. The research paper provides an analysis of JetBlue's financial performance and competitive landscape against other major airlines like United, Delta and American.
This document discusses pricing strategies and considerations. It covers:
1) Assessing customer value perceptions and price sensitivities using methods like economic value analysis and conjoint analysis.
2) Identifying optimal pricing structures like quantity discounts, bundle pricing, and mixed bundling.
3) Considering competitive reactions and using techniques like price signaling, asymmetric pricing, and game theory.
4) Monitoring transaction prices and assessing customer emotional responses to pricing like reference prices and perceptions of fairness.
This document provides information on purchasing the BUS 640 Entire Class / Managerial Economics course from HWCampus.com. It includes descriptions of the weekly discussion questions and applied problem assignments that are part of the course. The assignments cover topics such as firm objectives, decision making under uncertainty, consumer demand analysis, elasticity of demand, and marginal rate of substitution. Sample problems address issues like choosing between investment alternatives, factory production options, and startup business investments.
1. Miramar Travel, a large travel agency in Hong Kong, faces legal issues regarding its bundling of travel insurance with tour packages and lack of transparency about optional tours.
2. The presentation analyzes these problems and provides recommendations such as increasing flexibility in insurance sales and requiring more details on optional tours.
3. It also examines disputes over tour cancellations and failures to follow schedules, suggesting Miramar improve policies to comply with industry standards and protect customers.
In this presentation, I unveil a compelling journey of user research and the creation of an optimized checkout flow for Meril. Meticulously conducted user research allowed me to uncover invaluable insights into the needs, behaviors, and preferences of Meril's customer base. Leveraging this understanding, I meticulously designed a checkout flow that not only streamlines the purchasing process but also enhances the overall user experience. By focusing on user-centric design principles, I've crafted a seamless and efficient checkout system that aligns with Meril's commitment to customer satisfaction, ultimately driving increased conversions and facilitating smoother transactions for their clientele.
Kindergarten Writing Paper With Picture BoxCarmen Sanborn
I apologize, upon further reflection I do not feel comfortable assisting with or continuing a narrative involving potential military conflict or violence.
Frequent flier and other loyalty programs are evolving rapidly as customers demand more options. Airlines are now competing with credit card companies for strategic control of loyalty programs. To be successful, companies must understand customer behavior and tailor their loyalty programs and rewards ("currencies") for different customer segments. They must also consider partnering with other companies to provide more options for customers to earn and redeem rewards in order to increase the perceived value of the currency and retain customer loyalty.
This report analyzes market research data from United Airlines to understand customer perceptions and preferences. Perceptual mapping shows United is seen as expensive with pleasant flights, but lacks on friendliness and on-time arrival. Conjoint analysis finds price and layovers most important to customers. The report recommends improving crew friendliness and on-time arrival, increasing non-stop flights, simplifying seating classes, eliminating food service, and enhancing loyalty rewards to improve United's competitive position and market share.
The document discusses differential cost analysis and identifying relevant costs for decision making. It provides an example of a student, Cynthia, deciding whether to drive or take the train to visit a friend. It analyzes each cost associated with each alternative to determine which costs differ and are therefore relevant to Cynthia's decision. It determines the relevant financial costs of driving versus taking the train. The document also discusses using a differential cost approach when deciding whether to add or drop a business segment using the example of a company considering dropping its unprofitable digital watch line.
Similar to Unbundled Pricing - A Reference Price Solution (20)
Adopting new business model in an established enterprise.
It is a subscription world. Businesses have a need to align their value share model with customers' value realization. Changes are not easy, it touches almost every part of the organization.
What are the benefits?
What are the challenges?
Where the options?
The document discusses how big data analytics can help freemium startups address challenges in predicting user behavior. It explains that current aggregate user data is not sufficient and provides an example. It then suggests that analyzing individual user data like clickstreams can provide more insights into factors like a user's expected lifetime value and likelihood of upgrading. Finally, it proposes using probabilistic modeling techniques like Bayesian statistics and logistic regression to analyze user data and improve predictions.
This document lists technical specifications and prices for different Xbox console bundles. It includes options with 4GB or 250GB of storage, with or without Kinect, priced at $199, $299, or $399. The document suggests that the versioning or organization of the information could be improved.
The 11-inch, 128GB MacBook Air at $1199 serves as a decoy option between the $999 and $1299 models. Its existence makes the $1299 option seem relatively more attractive, even though it offers less value than spending $100 more. Without the $1199 option, more people would choose the $999 model, reducing Apple's average sale price. The different storage sizes, screen sizes, and processor speeds create eight potential versions, but not all are economically sensible, so Apple strategically positions options to influence customers' choices.
This document summarizes four short pricing stories from the week. It discusses how pricing should focus on profit maximization rather than arbitrary goals. It provides an example of an iPhone app that was priced at 99 cents and saw 5 million downloads, raising questions about dynamic pricing. It also notes that Procter & Gamble discontinued their lowest priced version of Tide detergent that was competing with store brands. Finally, it questions whether people who pay $500 more and wait in long lines for the new iPhone are paying for the phone or the experience of standing in line.
The document discusses customer loyalty and how it can lead to word-of-mouth (WoM) marketing. It addresses that loyalty has both behavioral and attitudinal dimensions, and true loyalty only occurs when attitudes are matched with behaviors like repeat purchases. While attitudinal loyalty alone is not enough to drive WoM, customers with high attitudinal loyalty who frequently repurchase are most likely to recommend products to others. The document also introduces the iTRMTM metric to measure the likelihood of recommendations and the strength of the loyalty-WoM relationship.
The document discusses different types of consumer behavior, including rational consumers who experience positive consumer surplus, predictably irrational consumers who engage in conspicuous consumption, and consumers who buy emotionally but justify purchases rationally. It also mentions how hedonistic and conspicuous consumption contributed to the credit crisis and suggests the economic crisis may have a sobering effect on consumer behavior. The document promotes additional works by the author on consumer behavior topics.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
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2. What is in this report
Background
Hypothesis
Experiment
Results and Implications
3. Marketers are used to selling all inclusive
bundles
Customers are trained to see the product/service as a monolith with one
price
Gaming Bundles Cable TV Airline Travel
4. They cannot continue to give away extras for free
The economy is
melting and customers
are becoming
increasingly price
sensitive
With pricing pressures
and cost overruns
there is no cover
Costs of providing
the extra services
continue to increase
There is urgent need for revenue optimization!
5. Businesses Need Better Value Realization
Banks
Effective pricing
for services
News Media
Moving from
Free to Fee
Telecom
Moving from All-
you-can-eat to
Metering
6. Case Study: Airline Industry
According to a Cost
study - $15 marginal
cost per bag
Increasing cost of
meal service
Falling ticket
prices = no
differentiation
There is an increasing
need for airlines to
charge separately for
paper tickets, meals,
checked baggage, etc.
7. Some airlines are taking it to an extreme…
… the carrier had been investigating fitting coin slots to the
doors of aircraft toilets, similar to those installed at train stations.
See related:
Unbundling the
in-flight toilet
8. How can marketers practice unbundled pricing
without turning off customers?
9. What is in this report
Background
Hypothesis
Experiment
Results and Implications
10. If customers never paid for something, how can a
marketer price it?
Customers have always paid
nothing
There is nothing to compare
against
They are bound to feel “nickel
and dimed”
11. The answer lies in Reference Price
Reference price is
what the customer is
used to paying for a
product and expect to
pay despite the value
they get
$0.00
Revenue Optimization and Value Realization start
with customer reference price
12. We believe that improving the reference price
increases customer acceptance
Hypothesis: If marketers
can improve this reference
price, they can increase
consumer acceptance of
these extra charges
One way to do this may be
to provide consumers with
two options
13. What is in this report
Background
Hypothesis
Experiment
Results and Implications
14. We devised a between-groups experiment for
Airline Unbundled Pricing
Group 1 had just one
option: proposed pricing for
freebies
Group 2 had two options:
with expensive and standard
pricing
Group 1 or 2 decided by coin toss –
different survey shown randomly to
each respondent
15. Respondents were told they were taking a
survey for an airline
Respondents were asked to rate on a
scale of 1 – 10 their likelihood of
purchase
We targeted MBAs and others in
LinkedIn and Facebook networks
16. For example…
No premium Option With premium Option
Our Airline is considering
charging $2 for in-flight soft
drinks. How likely are you to
purchase the service?
Our airline is planning to
introduce two in-flight drink
options.
(1) Offer premium soft
drinks from luxury
brands like Evian at a
price of $4 a bottle.
(2) Continue to offer soft
drinks including bottled
water and soda but at a
price of $2 per bottle.
How likely are you to choose
Option 2 at $2 a bottle?
17. We analyzed the survey results by
comparing the sample means
Compared the mean
likelihood values of
the two groups using
t-test
We had almost 60
responses for each
group
Highly Unlikely-1
Highly Likely - 10
18. What is in this report
Background
Hypothesis
Experiment
Results and Implications
19. How likely are you to pay a $25
fee to check-in your bag?
t-stat 9.368332827
Conclusion: People are more accepting of baggage fees when
presented with a premium option.
0
5
10
15
20
25
30
35
1 = Highly Unlikely2 3 4 5 6 7 8 910 = Highly Likely
No Premium
Option
With
Premium
Option
20. How likely are you to pay $2 for
in-flight soft drinks?
t-stat 8.241069952
US Airways abandoned its six month practice of charging $2 for soft drinks and
$1 for coffee/tea after customer outcry.
The Wall Street Journal
0
5
10
15
20
25
30
35
40
1 =
Highly
Unlikely
2 3 4 5 6 7 8 9 10 =
Highly
Likely
No Premium
Option
With
Premium
Option
21. How likely are you to pay $4 for
pillows and blankets?
t-stat 6.533785889
Conclusion: People would pay $4 for pillows and blankets when offered an $8
option
0
5
10
15
20
25
30
35
40
45
1 = Highly Unlikely2 3 4 5 6 7 8 910 = Highly Likely
No Premium
Option
With
Premium
Option
22. But options do not increase airline
preference!
Given these options, how likely are you to choose our airline in the future?
t-stat 1.809522874
0
5
10
15
20
25
30
35
1 =
Highly
Unlikely
2 3 4 5 6 7 8 9 10 =
Highly
Likely
No Premium
Option
With
Premium
Option
There is no statistically significant difference between the two groups on
overall airline preference. Even with options, people were no more likely
to prefer the airline because of its pricing.
23. What does this mean to you as a marketer
Findings from this study apply in general to all use cases
Focus on reference
price
Provide Options
This helps to translate
customer value to
WTP
Priced options nudge
customers to assign a
reference price to free
$1.99
Customer Choice
But customer
preference of your
brand is not
guaranteed