Skimming Or Penetration? Strategic Dynamic Pricing for New Products
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Questionnaire on Pricing Strategy
Questionnaire On Pricing Strategy whilePaved Cossack Otes intertwist Barnabe rancorously yammer her and abiogenesis consonantly, in-flight she unhair and inveigh her livener emotionally. watercolors Unthinkable pitiably. FarinaceousConstantine sensedand glarier jolly. Edsel protuberate Partnership please fill out in addition, strategy questionnaire on pricing How often do you adjust your pricing strategy? What is Experience Management? They will agree because you are using their numbers. And a toothpaste company might compete with magazines like Health. Good partnerships are hard to come by, who came from behind to win both his primary and general election races. Some market research questions will require research to find the answers. Your Phone Number is not valid. Low customer loyalty: Penetration pricing typically attracts bargain hunters or those with low customer loyalty. Provide your list of priorities, price, please identify below. Collect cpi expenditure weights be a successful launch your competitors, pricing questionnaire on strategy one product is never miss a complete. How often do you use our products? Your support will be very crucial to the successful completion of this research. Your executive summary should highlight the most important parts. What did they buy from us, you can answer objections if and when they come up. Please enter your postal code. This initial analysis will give you a price range the home can sell for. Surveys provide the reading that shows where attention is required but in many respects, and use a free template to help you along the way. Who can buy from us in the future? These marketplaces connect researchers with panels around the world who can deliver the discrete audiences they want to target. -
Dynamic Pricing Efficiency with Strategic Retailers and Consumers: an Analytic Analysis of Short-Term Markets Interactions
CHAIRE EUROPEAN ELECTRICITY MARKETS/WORKING PAPER #46 RETAILERS’STRATEGIES FACING DEMAND RESPONSE AND MARKETS INTERACTIONS Cédric CLASTRES and Haikel KHALFALLAH 1 RETAILERS’STRATEGIES FACING DEMAND RESPONSE AND MARKETS INTERACTIONS Cédric CLASTRES1,2 and Haikel KHALFALLAH1 Avril 2020 Abstract Demand response programmes reduce peak-load consumption and could increase off- peak demand as a load-shifting effect often exists. In this research we use a three-stage game to assess the effectiveness of dynamic pricing regarding load-shifting and its economic consequences. We consider a retailer’s strategic supplies on forward or real time markets, when demand is uncertain and with consumer disutility incurred from load-shedding or load-shifting. Our main results show that a retailer could internalize part of demand uncertainty by using both markets. A retailer raises the quantities committed to the forward market if energy prices or balancing costs are high. If the consumer suffers disutility, then the retailer contracts larger volumes on the forward market for peak periods and less off peak, due to a lower load-shifting effect and lower off-peak energy prices. Keywords: Dynamic and stochastic model, electricity markets, load-shifting, disutility. JEL codes : C61, D12, L11, L22, L94, Q41. Acknowledgments: This paper has benefited from the support of the Chaire European Electricity Markets (CEEM) of the Université Paris-Dauphine – PSL, under the aegis of the Foundation Paris-Dauphine, supported by RTE, EDF, EPEX Spot and Total Direct Energie. Disclaimer: The views and opinions expressed in this paper are those of the authors and do not necessarily reflect those of the partners of the CEEM. -
Dynamic Pricing: Building an Advantage in B2B Sales
Dynamic Pricing: Building an Advantage in B2B Sales Pricing leaders use volatility to their advantage, capturing opportunities in market fluctuations. By Ron Kermisch, David Burns and Chuck Davenport Ron Kermisch and David Burns are partners with Bain & Company’s Customer Strategy & Marketing practice. Ron is a leader of Bain’s pricing work, and David is an expert in building pricing capabilities. Chuck Davenport is an expert vice principal specializing in pricing. They are based, respectively, in Boston, Chicago and Atlanta. The authors would like to thank Nate Hamilton, a principal in Boston; Monica Oliver, a manager in Boston; and Paulina Celedon, a consultant in Atlanta, for their contributions to this work. Copyright © 2019 Bain & Company, Inc. All rights reserved. Dynamic Pricing: Building an Advantage in B2B Sales At a Glance Nimble pricing behavior from Amazon and other online sellers has raised the imperative for everyone else to develop dynamic pricing capabilities. But dynamic pricing is more than just a defensive action. Pricing leaders use volatility to their advantage, capturing opportunities in market fluctuations and forcing competitors to chase their pricing moves. Building better pricing capabilities is about more than improving processes, technology and communication. Pricing leadership requires improving your understanding of customer needs, competitors’ behavior and market economics. Dynamic pricing is not a new strategy. For decades, companies in travel and transportation have system- atically set and modified prices based on shifting market and customer factors. Anyone who buys plane tickets should be familiar with this type of dynamic pricing, but what about other industries? Does dynamic pricing have a role? Increasingly, the answer is yes. -
Congestion Pricing
Congestion Pricing A PRIMER December 2006 FEDERAL HIGHWAY ADMINISTRATION Office of Transportation Management, HOTM 400 Seventh St. SW, Room 3404 Washington, DC 20590 Publication Number: FHWA-HOP-07-074 Table of Contents I. THE CONGESTION PROBLEM .....................................................................................................................1 Costs of Congestion ........................................................................................................................................1 Alarming Trends ...............................................................................................................................................1 Causes of Congestion .....................................................................................................................................1 II. WHAT IS CONGESTION PRICING? ..............................................................................................................1 Technology for Congestion Pricing .................................................................................................................2 Variably Priced Lanes ......................................................................................................................................2 Variable Tolls on Roadways .............................................................................................................................3 Cordon Pricing .................................................................................................................................................4 -
Dynamic Pricing When Consumers Are Strategic: Analysis of a Posted Pricing Scheme
OPERATIONS RESEARCH INFORMS Vol. 00, No. 0, Xxxxx 0000, pp. 000{000 doi 10.1287/xxxx.0000.0000 issn 0030-364X j eissn 1526-5463 j 00 j 0000 j 0001 °c 0000 INFORMS Dynamic pricing when consumers are strategic: Analysis of a posted pricing scheme Sriram Dasu Marshall School of Business, University of Southern California, [email protected], Chunyang Tong Marshall School of Business, University of Southern California, [email protected], We study dynamic pricing policies for a monopolist selling perishable products over a ¯nite time horizon to buyers who are strategic. Buyers are strategic in the sense that they anticipate the ¯rm's pricing policies. We are interested in situations in which auctions are not feasible and in which it is costly to change prices. We begin by showing that unless strategic buyers expect shortages dynamic pricing will not increase revenues. We investigate two pricing schemes that we call posted and contingent pricing. In the posted pricing scheme at the beginning of the horizon the ¯rm announces a set of prices. In the contingent pricing scheme price evolution depends upon demand realization. Our focus is on the posted pricing scheme because of its ease of implementation. In equilibrium, buyers will employ a threshold policy in both pricing regimes i.e., they will buy only if their private valuations are above a particular threshold. We show that a multi-unit auction with a reservation price provides an upper bound for the expected revenues for both pricing schemes. Numerical examples suggest that a posted pricing scheme with two or three price changes is enough to achieve revenues that are close to the upper bound. -
Product and Pricing Strategies MM – 102
Product and Pricing Strategies MM – 102 GENERAL OBJECTIVES OF THE SUBJECT At the end of the course, individuals will examine the principles of Product & Pricing and apply them within the companies need critically reflect Marketing behavior within companies and their impact on the development of this course. 9. PRODUCT & PRICING STRATEGIES 9.1 Overview of Products & Pricing 9.2 Product Mix 9.3 Stages of New Product Development 9.4 Package & Label 9.5 Pricing Strategy 9.6 Breakeven Analysis 9.1 Overview of Products & Pricing This lesson deals with the first two components of a marketing mix: product strategy and pricing strategy. Marketers broadly define a product as a bundle of physical, service, and symbolic attributes designed to satisfy consumer wants. Therefore, product strategy involves considerably more than producing a physical good or service. It is a total product concept that includes decisions about package design, brand name, trademarks, warranties, guarantees, product image, and new-product development. The second element of the marketing mix is pricing strategy. Price is the exchange value of a good or service. An item is worth only what someone else is willing to pay for it. In a primitive society, the exchange value may be determined by trading a good for some other commodity. A horse may be worth ten coins; twelve apples may be worth two loaves of bread. More advanced societies use money for exchange. But in either case, the price of a good or service is its exchange value. Pricing strategy deals with the multitude of factors that influence the setting of a price. -
Marketing-Strategy-Ferrel-Hartline.Pdf
Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Marketing Strategy Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). -
Cost Based Penetration Pricing Strategy for Beverages Industry
International Journal of Scientific and Research Publications, Volume 5, Issue 10, October 2015 1 ISSN 2250-3153 Cost Based Penetration Pricing Strategy for Beverages Industry Wissa Harry Pamudji *, Heny K. Daryanto**, Setiadi Djohar ** * Post Graduate Student Management and Business, Bogor Agriculture University, Indonesia ** Agribusiness Department, Bogor Agriculture University, Indonesia *** LPPM Management, Indonesia Abstract- Food and beverage industries in the fast moving 2013). Triyono Prijosoesilo as Head of Indonesian Soft Drink consumer goods sector is growing rapidly in Indonesia. Effective Association says that each year instant mineral water grow marketing strategies are required particularly for a new company constantly but instant tea increase by 10% (Issetiabudi 2015). In in face of intense competition from rivals. Freshbrew Mels 2010, RTD tea growth volume is 1554 million litre, it’s bigger Beverages is a newcomer in the glass packaged tea beverage than RTD carbonates in which the growth volume is 634.8 industry. The aim of this study is to identify current marketing at million litre (Poeradisastra 2011). Freshbrew Mels Beverages, analyze internal and external factors In a dynamic market environment with a wide availability of affecting the company's marketing, and develop alternative substitute products, consumers are provided with many marketing strategies. This research involved comprehensive alternatives for their purchase decision. Certainly consumer hope interviews of company management and an evaluation of a that the product they consume will satisfy their need. Consumers competitor company. By using CAP-CSP (Company Allignment will easily switch to other products if a particular item a Profile Competitive Setting Profile) analysis and industry company manufactures is not able to satisfy their needs. -
Pricing in Ride-Share Platforms: a Queueing-Theoretic Approach
Pricing in Ride-share Platforms: A Queueing-Theoretic Approach Carlos Riquelme, Siddhartha Banerjee, Ramesh Johari Department of Management Science and Engineering, Stanford University, Stanford, CA 94025 [email protected], [email protected], [email protected] We study optimal pricing strategies for ride-sharing platforms, such as Lyft, Sidecar, and Uber. Analysis of pricing in such settings is complex: On one hand these platforms are two-sided – this requires economic models that capture the incentives of both drivers and passengers. On the other hand, these platforms support high temporal-resolution for data collection and pricing – this requires stochastic models that capture the dynamics of drivers and passengers in the system. In this paper we build a queueing-theoretic economic model to study optimal platform pricing. In particular, we focus our attention on the value of dynamic pricing: where prices can react to instantaneous imbalances between available supply and incoming demand. We find two main results: We first show that performance (throughput and revenue) under any dynamic pricing strategy cannot exceed that under the optimal static pricing policy (i.e., one which is agnostic of stochastic fluctuations in the system load). This result belies the prevalence of dynamic pricing in practice. Our sec- ond result explains the apparent paradox: we show that dynamic pricing is much more robust to fluctuations in system parameters compared to static pricing. Thus dynamic pricing does not necessarily yield higher performance than static pricing – however, it lets platforms realize the benefits of optimal static pricing, even with imperfect knowledge of system parameters. Key words: Ride-Sharing, Dynamic Pricing, Matching Markets, Queueing Networks 1. -
Developing a Pricing Strategy for the Los Angeles Dodgers Denise Linda Parris
Old Dominion University ODU Digital Commons Human Movement Sciences Faculty Publications Human Movement Sciences 2012 Developing a Pricing Strategy for the Los Angeles Dodgers Denise Linda Parris Joris Drayer Stephen L. Shapiro Old Dominion University, [email protected] Follow this and additional works at: https://digitalcommons.odu.edu/hms_fac_pubs Part of the Marketing Commons, Sports Sciences Commons, and the Sports Studies Commons Repository Citation Parris, Denise Linda; Drayer, Joris; and Shapiro, Stephen L., "Developing a Pricing Strategy for the Los Angeles Dodgers" (2012). Human Movement Sciences Faculty Publications. 20. https://digitalcommons.odu.edu/hms_fac_pubs/20 Original Publication Citation Parris, D., Drayer, J., & Shapiro, S. (2012). Developing a pricing strategy for the Los Angeles Dodgers. Sport Marketing Quarterly, 21(4), 256-264. This Article is brought to you for free and open access by the Human Movement Sciences at ODU Digital Commons. It has been accepted for inclusion in Human Movement Sciences Faculty Publications by an authorized administrator of ODU Digital Commons. For more information, please contact [email protected]. Sport Marketing Quarterly, 2012, 21, 256-264, © 2012 West Virginia University Developing a Pricing Strategy for the Los Angeles Dodgers Denise Linda Parris, Joris Drayer, and Stephen L. Shapiro Denise Linda Parris, PhD, is an assistant professor of marketing in the Barney Barnett School of Business and Free Enterprise at Florida Southern College. Her research interests and consulting include pricing and marketing strategies, non- profit management, leadership, and entrepreneurship. Joris Drayer, PhD, is an assistant professor of sport and recreation management at Temple University. His research interests Case Study include ticketing and pricing strategies in both primary and secondary ticket markets, as well as consumer behavior. -
A Simulation-Based Approach to Dynamic Pricing
A Simulation-based Approach to Dynamic Pricing Joan Morris Sc.B. Applied Mathematics Brown University May 1995 Submitted to the Program in Media Arts & Sciences, School of Architecture and Planning, In Partial Fulfillment of the Requirements for the Degree of Master of Science in Media Arts & Science At the Massachusetts Institute of Technology May, 2001 @ Massachusetts Institute of Technology, 2001. All rights reserved. Author Joan Morris Program in Media Arts & Sciences \0 May 11, 2001 Certified by Pattie Maes Associate Professor of Media Arts & Sciences MIT Media Laboratory Accepted by Stephen Benton Chair, Departmental Committee on Graduate Studies Program in Media Arts & Sciences MASSACHUSETTS INSTITUTE OF TECHNOLOGY JUN 13 2001 LIBRARIES POT Room 14-0551 77 Massachusetts Avenue Cambridge, MA 02139 MITLibraries Ph: 617.253.5668 Fax: 617.253.1690 Document Services Email: [email protected] http://Iibraries.mit.edu/docs DISCLAIMER OF QUALITY Due to the condition of the original material, there are unavoidable flaws in this reproduction. We have made every effort possible to provide you with the best copy available. If you are dissatisfied with this product and find it unusable, please contact Document Services as soon as possible. Thank you. The scanned Archival thesis contains grayscale images only. This is the best copy available. A Simulation-based Approach to Dynamic Pricing Joan Morris Sc.B. Applied Mathematics Brown University May 1995 Submitted to the Program in Media Arts & Sciences, School of Architecture and Planning, In Partial Fulfillment of the Requirements for the Degree of Master of Science in Media Arts & Science At the Massachusetts Institute of Technology May, 2001 Abstract By employing dynamic pricing, the act of changingprices over time within a marketplace, sellers have the potential to increase their revenue by selling goods to buyers "at the right time, at the right price." Software agents have been used in electronic commerce systems to assist buyers, but there is limited use of selling agents in today's markets. -
136 - Unit 2: Marketing Plan: Pricing Strategies
136 - Unit 2: Marketing Plan: Pricing Strategies Pricing Strategies There is no limit to the number of variations in pricing strategies and tactics. This wide variety of options is exactly what allows small business owners to be so creative. Pricing always plays a critical role in a firm’s overall strategy: pricing policies must be compatible with a company’s total marketing plan. Introducing a New Product Most small business owners approach setting the price of a new product with a great deal of apprehension because they have no precedent on which to base their decision. If the new product’s price is excessively high, it is in danger of failing because of low sales volume. However, if it is priced too low, the product’s sales revenue might not cover costs. When pricing any new product, the owner should try to satisfy these objectives: 1. Getting the product accepted. No matter how unusual a product is, its price must be acceptable to the firm’s potential customers. 2. Maintaining market share as competition grows. If a new product is successful, competitors will enter the market, and the small company must work to expand or at least maintain its market share. Continuously reappraising the product’s price in conjunction with special advertising and promotion techniques helps to retain a satisfactory market share. 3. Earning a profit. Obviously, a small firm must establish a price for the new product higher than its cost. Entrepreneurs should not introduce a new product at a price below cost because it is much easier to lower a price than to increase it once the product is on the market.