Pricing Decisions and Market Success: Priceline and Uber
Auction pricing
A common price-setting method
Competitive pricing
A common price-setting method
Economic-value-to-customer pricing
A common price-setting method
Markup pricing
A common price-setting method
Target-rate-of-return pricing
A common price-setting method
By-product pricing
A product-mix pricing strategy
Captive-product pricing
A product-mix pricing strategy
Loss-leader pricing
A product-mix pricing strategy
Optional-feature pricing
A product-mix pricing strategy
Product bundling
A product-mix pricing strategy
Two-part pricing
A product-mix pricing strategy
Pricing policy
A six-step procedure followed by a company
Price endings
Affect consumers' perceptions of prices
Price-quality inferences
Affect consumers' perceptions of prices
Name Your Own Price
Allowed customers to set their own prices for airline tickets
Uber's success
Attributed to ease of use and fair pricing
Priceline's success
Attributed to focus on profitable segments of online travel
Purchase decisions
Based on how consumers perceive prices
Reference prices
Influence consumers' perceptions of prices
Uber's customer value proposition
Convenience and fair pricing
Elastic demand
Demand that is responsive to a change in price
Price setting
Driven by costs, competitors, and customers
Marketing element
Elements that produce costs, except for price
Price ceiling
Established by customers' assessment of unique features
Uber's growth
Expanded to over 700 metropolitan areas worldwide
Optimal market price
Helps the company achieve its objectives
Priceline
Launched in 1998 with the "Name Your Own Price" service
Aggressive pricing actions
Lowering or raising prices to gain market position and grow profits
Pricing decisions
More challenging in a changing economic and technological environment
Competitor price changes
Must be anticipated and responded to
Uber
Originated in 2008 as a smart-phone app for calling taxis
Product-mix pricing
Pricing strategy for a product that is part of a product mix
Competitors' prices
Provide an orienting point for price setting
Trade support
Securing trade support by selecting the right mix of push and pull strategies
Costs
Set a floor for the price
Demand curve
Shows the market's probable purchase quantity at alternative prices
Pricing objective
The goal a company wants to achieve through pricing
Price
The only marketing element that produces revenue
Incentives
Tools designed to stimulate purchase of products or services
Surge pricing
Uber's practice of charging higher prices during times of high demand
Pull strategies
Use advertising and incentives to persuade consumers to demand the product from intermediaries
Push strategies
Use manufacturer's sales force to induce intermediaries to carry, promote, and sell the product