BUSI 2400 Lecture Notes - Lecture 14: Reservation Price, Price Discrimination
2 Jul 2018
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CCR13C9 (attended)
what types of information would allow petGRO to dynamically estimate an individual's customer
reservation price?
1.Customers how are seniors
1. Discount and bundling pricing program: Compare bundles that seniors prefer to analyse their
reservation prices. Providing discounts targeting seniors and bundling offers can be used to
increase profit when the market conditions make it difficult to price discriminate in the presence
of variation in consumer preferences for the products in the bundle (petGRO nutriVAL).
2. Investigate senior customer preference: managers can collect some information about
seniors purchasing habits, for example, which product they prefer to visit or what kind of
products they like best. Seniors most likely prefer going for less tech advanced products.
3)Seniors Reward purchasing program: A Reward program for our senior customers is a
strategy that could stimulate our customers to buy more product. Senior customers could get
more discounts, petGRO could set different price for different purchasing, prices are changed
based on the quantity requested for senior of customer.
2.Explain how your chosen information would lead to individual dynamic pricing ?
1) By analysing the data, petGRO can determine what kind of prices customers prefer from
the different discount bundles customers select, therefore this can lead to decide on
suitable pricing for each individual.
2) By using statistical information gathered from public statistics, about how many times
customers has browsed the web looking for a certain pet product, have asked about
certain product, they purchased that product at that certain price, p can analyse
customer’s preferences on certain products, and as a result, allow petGRO to promote
those products more frequently
3) By using this rewards system, petGRO can optimize different variations of prices
according to reward members product history. It can help petGRo identify customers
quantities of purchases, feedbacks on post-purchase, and then rewarding those
customers with reward points, discounts helps to satisfy the PPD.
3.How do you feel if petGRO implemented this type of pricing strategy?
-If PetGRO were to utilize google searches to link the petGRO name with any
keyword that is associated with “pet” so senior customers can have faster access
to our products when using the internet then this would be a good thing.
-We believe this is beneficiel for PetGRO Identify frequent senior customers and
reward them with electronic points they can use for their next purchase.for
example, get 10$ off the next purchase if you write a review for this product.
-However, there are some drawbacks are different in prices are not evidence of
price discrimination, if they reflects differences in costs.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
1. customers how are seniors: discount and bundling pricing program: compare bundles that seniors prefer to analyse their reservation prices. Seniors most likely prefer going for less tech advanced products. 3)seniors reward purchasing program: a reward program for our senior customers is a strategy that could stimulate our customers to buy more product. Senior customers could get more discounts, petgro could set different price for different purchasing, prices are changed based on the quantity requested for senior of customer. It can help petgro identify customers quantities of purchases, feedbacks on post-purchase, and then rewarding those customers with reward points, discounts helps to satisfy the ppd.
