...Dynamic Pricing = Price Discrimination Dynamic Pricing, the idea that prices will change according to the level of demand. Dynamic Pricing is one version of price discrimination that delivers prices to consumers based on their personal attributes and other environment related events. The different attributes are collected by the producer/retailer and are based on bits of information, like age, financial gain, and/or region one inhabitants. The price is then individualized to the consumer. Many consumers find this practice to be harmful and many companies pre-internet commerce found this practice to be overly expensive. But, now that we are out of the dark ages, companies such as Amazon, Best Buy, and (our country’s favorite) Wal-Mart could possibly be able to proceed with this idea if it weren’t looked down upon so feverishly. As for the short term aspect concerning both dynamic pricing and the retail industry, it definitely has some problems to overcome if it were to ever succeed for a long term. Because the idea is based strictly on demand, this is hard for the retail world. Most items sold in retail are items that can become quickly outdated simply because they no longer fashionable. Also it is harder to discriminate buyers when the price is published in multiple places all over the internet. As is well known from the provided literature, the Airline industry is a respected industry that also contains price discrimination. The discrimination is seen when boarding a plane...
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...QUESTIONS FOR FINAL EXAM 1. What is control? 2. What is automatic control? 3. What is called as automatic control system? 4. What is the primary goal of automatic control? 5. What is called as object of management? 6. What is called as the operated size? 7. What is called as operating body? 8. What is called as a sensitive element? 9. What is the entrance and target sizes? 10. What is called as operating influence? 11. What is called as indignation? 12. What is called as a deviation from the set size? 13. What is called as the actuation device? 14. What is called as the setting device? 15. What is called as a function chart and of what it consists? 16. In what difference of a signal from physical size? 17. In what an essence of a principle of the opened management? 18. In what an essence of a principle of indemnification? 19. In what an essence of a principle of feedback? 20. List merits and demerits of principles of management? 21. What special case of management is called as regulation? 22. In what difference of systems of direct and indirect regulation? 23. List and give the short characteristic of principal views CS? 24. What is called as static mode CS? 25. What is called as static characteristics CS? 26. What is called as the equation of statics CS? 27. What difference from strengthening factor is called in transfer factor, in what? 28. In what difference...
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...cannot be stored at all” (Netessine, 2002). Kimes and Wirtz (2003) defined revenue management as “the application of information systems and pricing strategies to allocate the right capacity to the right customer at the right price at the right time”. As pricing serves as an important factor in yield management, I would like to discuss the issues of pricing strategy regarding to the application of yield management. The pricing strategy involves in yield management is commonly known as price discrimination. The hotel or airline industries tend to use this most often due to the following industrial traits: 1. Fixed capacity 2. Predictable demand 3. Perishable inventory 4. Appropriate cost and pricing structures 5. Uncertainty of the demand There are 6 elements in Yield Management. According to Forgacs (2010), Yield Management consists of product definition, competitive benchmarking, strategic pricing, demand forecasting, business mix manipulation, and distribution channel management. [pic] Figure 1: Six elements of yield management (Forgacs 2010) The ideal situation for a hotel in a possible circumstance is to sell every room at the highest possible rate to maximise for profit maximisation purpose. To achieve this purpose, pricing strategy will be a crucial element. Pricing Strategy as a Profit Maximization Approach There is need for a hotel to...
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...Glossary of musical terminology From Wikipedia, the free encyclopedia Jump to: navigation, search This is a list of musical terms that are likely to be encountered in printed scores, music reviews, and program notes. Most of the terms are Italian (see also Italian musical terms used in English), in accordance with the Italian origins of many European musical conventions. Sometimes, the special musical meanings of these phrases differ from the original or current Italian meanings. Most of the other terms are taken from French and German, indicated by "(Fr)" and "(Ger)", respectively. Others are from languages such as Portuguese, Latin, and Spanish. Unless specified, the terms are Italian or English. The list can never be complete: some terms are common, and others are used only occasionally, and new ones are coined from time to time. Some composers prefer terms from their own language rather than the standard terms here. Contents A· B· C· D· E· F· G· H· I· J· K· L· M· N· O· P· Q· R· S· T· U· V· W· Z See also· References· External links See also: Glossary of jazz and popular music A[edit] a, à (Fr): at, to, by, for, in, in the style of... a 2: see a due in this list a battuta: return to normal tempo after a deviation. Not recommended in string parts, due to possible confusion with battuto (qv.); use a tempo, which means the same thing. ab (Ger): Off, organ stops...
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...SUMMER 2007 V O L . 4 8 N O. 4 Arvind Sahay How to Reap Higher Profits With Dynamic Pricing Please note that gray areas reflect artwork that has been intentionally removed. The substantive content of the article appears as originally published. REPRINT NUMBER 48415 pricing How to Reap Higher Profits With Dynamic Pricing S un Microsystems Inc. chairman Scott McNealy forecast that “With recent advances in wireless and information technology, even our cars could … call for bids whenever the fuel tank runs low, displaying a list of results from nearby gas stations right on the dashboard.”1 It sounds far-fetched. But dynamic pricing — where prices respond to supply and demand pressures in real time or near-real time — is making inroads in many different sectors, including apparel, automobiles, consumer electronics, personal services (such as haircuts), telecommunications and second-hand goods. The advent of the Internet led to cost transparency, decreased search costs and ease of price comparison. Some observers concluded that as a result, prices would decrease and equalize across different channels, and that fixed prices would continue to be the norm.2 However, price dispersion continues to be widespread and dynamic pricing is entering new sectors. EBay Inc. used auctions to sell more than $20 billion worth of goods in 2005. Ford Motor Co. sold more than $50 billion worth of automobiles in North America with demand-based DP in 2003...
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...1) Executive Summary This research paper will investigate the benefits of dynamic and fixed pricing and how the different pricing methods are perceived by consumers in the online market. It will examine consumer perceptions and behavior when purchasing various goods and services in an online environment. As well as the trends of increasing dynamic pricing methods on various websites even for goods and services sold at posted prices. 2) Introduction The pricing issue we have chosen to investigate is that of dynamic vs. fixed pricing of products and services on the internet. Prior to the introduction of e-commerce, products and services were distributed through brick-and-mortar stores with fixed prices. However, many online websites are now offering variable pricing methods for the exact same products. Consumers are now able to have much more control over the prices of these online goods and services. With a typical brick-and-mortar store or online store, the price is set by suppliers to meet the average consumers’ willingness to pay, in order to maximize profit. One of the main advantages associated with a set retail price is reliability. Consumers can make a decision to purchase the product at the current price, and they have a sense of security that the product will be available at the set price. With the introduction of e-commerce suppliers are now able to sell their products to much larger markets across the world and are no longer restricted by geographical...
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...Same point of departure, same destination, the same snacks. Why is it people sitting next to each other on the same flight can pay such different amounts for their tickets? Airline pricing seems to be a great mystery. The airline industry refers to their pricing game as “yield management” or “revenue management.” Meaning prices on the same plane can fluctuate widely based on available seats at the time of purchase. Even though this seems to defy logic (and textbook theory), there might just be a method, an algorithm, to the madness. In a perfectly competitive market, companies would have no power to discriminate by price. Price discrimination means that one is charging different prices to different consumers, whereby price cannot be explained by the differences in cost. In this type of environment, the price of airline seats would be a posted price and would stay the same until the flight would take off. This paper will try to rationalize the price discrimination that is ongoing in the airline industry, as well as seek to prove the optimality of certain routes via several online pricing sources. To price discriminate successfully, a company must have enough market power to be able to charge over marginal cost, and product resale is nearly non-existent. Although the resale of airline tickets is possible, it involves high search costs and does not eliminate restrictions such as blackout days or time-of-day-constraints. However, the airline industry is not predictable...
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...------------------------------------------------- Uber Technologies ------------------------------------------------- What is Uber Technologies? Uber Technologies, Inc. was founded in 2009 by Travis Kalanik and Garrett Camp as a way to solve their own transportation problems in the traffic congested city of San Francisco where it is still based and headquartered. Uber Technologies offers an on demand car service application for smartphone users that links drivers with people needing a ride. According to Jim Makos of Pestle Analysis “It brilliantly connects the transportation industry with technology via its ride-sharing app.” With the click of a button on the application you can summons a vehicle of your choice see your rate, pay your fare online, see how far the vehicle is and know when it has arrived. Once they arrive you are provided courteous and outstanding service and a cashless transaction with tip included in the fare. Uber has empowered people to use their personal vehicles to provide for profit rides to earn income. This has been a great opportunity for people to earn extra income and for some it has become their only source of income. Uber is providing jobs in an economy where the unemployment rate is at a high 7 %, in turn this will benefit our economy by promoting an entrepreneurial and financial opportunity for Uber drivers. Uber originally started under the name UberCab but after a cease and desist order from the city of San Francisco ordering them to...
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...MKTG 603 Major Assignments SECTION 1 VALS is a psychographic segmentation. VALS survey is a tool to predict consumer behavior . It helps to identify, segment and find the target customer . According to the VALS survey taken by me, it concluded that i was an Experiencer and my secondary type is Achiever. Though my achiever profile wasn't that accurate. The primary VALS type represents the dominant profile of the individual and the secondary type shows the person secondary image . Experiencer are motivated by self expression. Young, enthusiastic, and impulsive consumers. I am sometimes motivated with self expression. I often spend money on new products and experiences. It is the new experience which matters than having the same daily routines. Example.Travel fairs are a major attraction to me and in order to use my energy i am regularly visiting the gym Achievers are consumers who have goal oriented lifestyles and a deep commitment to career and family. Their social lives are basically structured around their social values. They don't respond to changes well as they are conservative and lives conventional lives.I do like to have durable products. As an example in order to achieve my goal i have structured my whole study career. Section 2 Dell company uses a lot of social media to engage with its customers online and market their product. Dell uses its community page from where consumers can access to a range of blogs reflecting its business segments...
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...Price: The New York Yankees pricing strategy is largely constructed around the tickets offered to their games due to the simple fact that revenues generated from tickets contribute to over half of the New York Yankees annual revenue (Bloomberg, 2013). The Yankees offer four general types of tickets for sale; these are regular season single tickets, premium tickets and season tickets. Each one varies in price and product/service provided, and even within each subset there are variations in price. Regular Single Season Ticket Price for New York Yankees: (TeamMarketingReport, 2014) Average - $51.55 (2nd highest in the league) Most Expensive - $1600.00 Least Expensive - $15.00 MLB Average - $27.93 The high cost of the tickets can be attributable to the Yankees success on the field, quality of product, large demand and move to a new stadium. From the 90’s to 2008 the Yankees were able to keep ticket prices within modest range, though still on the higher end of the spectrum the prices were closer to the league average(Emanuele, 2011). However with the Yankees moving into a brand new stadium in 2009 with nicer amenities, the prices in tickets changed to reflect that. (Getz, 2012) Premium tickets are regular single season tickets that come with at least one added amenity or classified by a team as premium due to occasions such as a big rival coming to town or special commemoration. The New York Yankees after their move into the new...
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...Pricing Strategy In order for a company to meet organizational goals, the company must put in place a pricing strategy. This pricing strategy will depend on the structure of the market. There are four main market structures that a company can use to meet their organizational objectives. The company may begin with one and end up with a different one like the Market Structure video, the organization started with a monopoly on the production of cell phones, then as competition arose, he went into an Oligolopoly and then into a pure competition as variables changed such as technology. The key to pricing strategy is to know what market your in and then be prepared to move from one to another, markets are dynamic you can move from one structure to another. The situation an organization can not get into is the scenario called the “Prisoners Dilemma”; an organization must choose to compete or cooperate with other organizations, staying on track of the objectives and realizing a share of the market and to retain revenue. There are several pricing strategies that corporations can use depending on the structure. The first one is economy pricing, which is a basic low price. Marketing and manufacturing are kept at a minimum; an example would be a super market. Premium pricing is used when the organization has a competitive advantage in the market. There is uniqueness to the product being sold. An example of promotional pricing would be “Buy one get one free” or “But one and get the...
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...Lemons. The name of your business is important because it is the first impression for all of your customers. A good name will stick inside the minds of customers allowing your company to stand out from the competition. Mission Statement: Our goal is to provide our customers with the absolute freshest lemons possible to give them the best lemonade on the market. A mission statement is important to a company because it gives information about the business and its goals to the consumer. Our goal lies with the environment first allowing for our customers to have purchase our product knowing that the lemonade they are drinking was made as eco-friendly as possible. The pricing strategy I chose to use with the lemonade stand will be dynamic pricing. Dynamic pricing will enable the company to adjust the pricing levels to gain the most profits while still thinking about the customer. It will also let the company to keep making profit even if the market for lemons or sugar changes. Although this will allow the company to change the prices whenever they want they should not change it too often to avoid customers getting upset because you used to be cheaper yesterday than you are today. I chose to pick this strategy since it is the best choice for the business and the consumer. In order for a company to go global and have an online presence they must first conduct proper research in the marketplace. One example of this would be to check for direct competitors as well as indirect...
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...Entertainment: Gaylord Hotels… Marriott International operates and franchised hotels and licenses vacation ownership resorts, its culture embraces excellence and communication and technological innovations. In the late 1980s, after the successful implementation of Revenue Management in Airlines, Marriott has led the hotel industry in the practice of Revenue Management. It became an early pioneer of Revenue Management in hospitality. They developed a system named One Yield, which focused on improving hotel profits by timing price increases and promotions as well as using inventory controls. In addition, Marriott has also developed the Demand Forecasting System (DFS). It helps hotels to optimize the profits and revenue by figuring out the best pricing strategies and sales procedures. This system became a powerful tool for Marriott properties. Today, the system enables to provide recommendations to Revenue Managers about what room rates to offer at any given property on any given day. The development of Revenue Management has increased...
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...Douglas Ganim Independent Study Dr. Mohan March 30, 2016 Budget Storage: Profit Maximization Case Study This past weekend, over the Easter holiday, I had the chance to sit down with the General Manager of Budget Storage, Mr. Bret Day, to discuss the unit rate data I had collected, including average occupancy rates. I was excited to share this data because I felt it confirmed that Budget Storage’s pricing was in-line with the key competitor facilities in the area. Of course, I felt this was a critical piece of information. After I was done with my presentation the manager looked over at me and said “Look, I have been doing this for 25 years. I am intimately aware of the storage rates throughout Central Ohio and especially on the east side of town where we are located. I already know our rates our competitive. Since you are a college student in your senior year, I was hoping your case project could answer one simple question for me. How can we make more profit out of this place each month, each quarter, and each year? That is all I really care about!” Mr. Day exclaimed. I walked out of the meeting and realized that Mr. Day was right. What good is data analysis if it does not tie in to a real strategy to yield the highest possible absolute profit? As I pondered this question it immediately led me back to the most important financial document of all, the Income Statement. With a new purpose I quickly realized that there are really only three ways...
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...Chapter 9 Pricing: Understanding and Capturing Customer Value Previewing the Concepts: Chapter Objectives 1. Discuss the importance of understanding customer value perceptions and company costs when setting prices. 2. Identify and define the other important internal and external factors affecting a firm’s pricing decisions. 3. Describe the major strategies for pricing imitative and new products. 4. Explain how companies find a set of prices that maximize the profits from the total product mix. 5. Discuss how companies adjust their prices to take into account different types of customers and situations. 6. Discuss the key issues related to initiating and responding to price changes. Just the Basics Chapter Overview Pricing is the second element in the marketing mix. It plays a powerful role, and that role is detailed in this chapter. There are several sections to this chapter and a lot of material to address. The chapter begins with discussing what a price actually is. It makes the point that price is more than just the money the buyer hands over to the seller—the broader view is that the price is the sum of all the values that the buyer exchanges for obtaining or using the product. There is also a brief discussion of dynamic- versus fixed-price policies, and how we as a society have evolved from dynamic to fixed and back to dynamic again. The chapter then moves into the heart of pricing. Both internal and external factors that...
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