What is huge advantage of dynamic pricing vs fixed pricing

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Reference no: EM132280979

HOMEWORK ACTIVITY THREE of FIVE

CHAPTER NINE: PRICING

There are three sections to this assignment

1. Chap 9: Online, Mobile and Social Media Marketing: Online Price Tracking. Textbook page 296

• At the end of each textbook CHAPTER, there are some Mini Cases and Applications that might be of interest to you.You will do the Mini Case called:Online, Mobile and Social Media Marketing: Online Price Tracking.

2. Chap 9: PRODUCT MIX PRICING

Define and give ONE brief but SPECIFIC example of each of the five product mix pricing situations.

The five product mix pricing situations are

a. Product line pricing: perhaps take a drive around town and look at the pricing of gasoline at a variety of different stations. Use product line pricing to explain what you are seeing.

b. Optional product pricing: think laptop with optional extra's.

c. Captive product pricing:think Keurig, razor blades and printer cartridges.

d. By-product pricing:

e. Product bundle pricing: think McDonald's Value Menu, Wendy's 4 for $4 or Taco Bell's $1 menu or Xfinity Triple Play.

3. Chap 9: DYNAMIC PRICING (DP)

For the ultimate in Dynamic Pricing, one need only look to the Professional Sport Ticket industry or the Travel industry.

Dynamic pricing is the strategy of continually (sometimes minute by minute) adjusting prices to meet the characteristics and needs of individual customers and situations. DP is prevalent online where Internet introduces fluid pricing technologies. In fact, SF GIANTS baseball was the first to use dynamic ticketing in pro sport. Airlines have been using since the 1980s.

A. What is one huge advantage of dynamic pricing vs fixed pricing?

B. Explain dynamic pricing

USING A SPECIFIC EXAMPLE. Airlines, hotels or sport tickets continually change prices based on how many seats left, time of day, the popularity of the visiting team, win-loss record, the weather etc

Answer by citing a specific example of your favorite Professional Sport Team or hotel or book a flight to Thailand for the summer. Examine the vast differences in prices offered and explain why this is occurring.

Actually quote the price differences as if you were actually going to the event/travel at two different times or dates.

C. What do websites like Trivago, Hotels, camellodge offer people regarding dynamic pricing?

Reference no: EM132280979

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