Consumer Behaviour Case study Priceline.com

Priceline approach is truly unique, and, back in 1998, it has indeed pretended marketing buyer system upside down. Jay Walker was the innovator of name-your-price concept, which can be interpreted as allowing people to break short up prices for products or helpers. The model was primarily based on shifting power into the hands of consumers and away from the companies; and, fit to impressive revenues of 482 million during the off adjust year; it [concept] really worked. The composition of the danger lay in providing solutions to various needs of customers crosswise the universe through application of new Internet technologies. It was similarly intend at finding new ways of doing business.. ab initio Priceline had big hopes and enormous expectations among those who invested millions in it. However, after nine age since the foundation and pre-announced failure in 2002, the association does non get along as peachy as expected, though does not tonicity bad on paper either. There has been substantial good in bookings comparing to last year and impressive increment in Europe, resulting in over 60% gross profits. In view of that, first question comes to mind: why the company has not been as successful as first imagined.

At the beginning many people, mainly money saving driven segment, were actually attracted to the pricing unveiling scheme, as for the first period they felt that they were able to set their price and get offers which, according to the Priceline advertisement, were 20 to 40% little than buying from traditional channels. What bulk of the customers were not real izing or unsounded only later is that they ! were not really setting up prices, but only face how much they were will to counterbalance for product or service; and then Priceline would search if in that location were any suppliers willing to fulfill the request at that price. If you insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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