15 hours ago by Rags Srinivasan

Southwest steadfastly refuses to charge for bags (at least the first two bags). Their marketing campaign, “Bags Fly Free”, says it all. In the short run they are missing out on the profit from baggage fees. The total airline industry profit from baggage fee for last year was around $536 million. Sou ...

Iterative Path - iterativepath.wordpress.com · Rank: 142,536 · 4 references

1 day ago by Rags Srinivasan

This is favorite pricing case study for the past ten months or so – Sensorielle spa in the city I love, Boulder, went to a Pay-what-you-can pricing model. The spa’s owner, Ms. Petteway made it clear that this is not “pay what you want” but a scheme to allow those loyal customers who were hurt by dow ...

Iterative Path - iterativepath.wordpress.com · Rank: 142,536 · 4 references

4 days ago by Rags Srinivasan

Within any given customer segment, however specifically defined it is, are individuals who ultimately are different from everyone else in the same segment. Demographics, psychographics, buying behavior etc all go only so far. Every individual ultimately has unique preferences, interests and willingn ...

Iterative Path - iterativepath.wordpress.com · Rank: 142,536 · 4 references

7 days ago by Rags Srinivasan

The book is The Price of Everything: A Parable of Possibility and Prosperity by Russell Roberts. A very well written book with a storyline, set in Berkeley and Bay area. That alone gets stars from me. If you are exposed to economics or a practitioner you will be bored especially with the parables tr ...

Iterative Path - iterativepath.wordpress.com · Rank: 142,536 · 4 references

11 days ago by Rags Srinivasan

Richistan is the name of the book by The Wall Street Journal columnist Robert Frank. The book is about the lives of the wealthy and high propensity to consume. Frank says in that book, Pricing for Richistan is like pushing an unlocked door – no pressure Through @pricingclub I saw the USA Today news ...

Iterative Path - iterativepath.wordpress.com · Rank: 142,536 · 4 references

13 days ago by Rags Srinivasan

It is relatively easier to target segments that are static with time – by that I mean, customers will stay in their “assigned segment” if not for their lifetime but for a much longer period. The extreme example is gender as segmentation variable. A marketer can target the resources accordingly and c ...

Iterative Path - iterativepath.wordpress.com · Rank: 142,536 · 4 references

15 days ago by Rags Srinivasan

I do not know how many times I quoted “If one price is good, two are better”. Instead of reading all my posts on this topic, it serves you well to read this article from The Economist on pricing for music downloads. A very clear explanation of basic pricing concepts and the need for pricing discrimi ...

Iterative Path - iterativepath.wordpress.com · Rank: 142,536 · 4 references

27 days ago by Kasie R. Jean

As a frequent Southwest passenger, paying for checked baggage is not quite commonplace for me yet, since Southwest is a firm proponent of bags flying free. As any traveler is well aware, many airlines now charge an additional fee for checking baggage, averaging roughly $20 per bag. However, I was in ...

Aplia Econ Blog: News for ... - econblog.aplia.com · Rank: 100,708 · 15 references

30 days ago by sfrable

MR had a guest post from Alex Tabbarrok’s brother, Nicholas Tabbarrok, an independent movie producer giving his two cents on the industry, specifically movie pricing. Why doesn’t the price of a movie ticket reflect the cost of a movie? In summary– and theory! — an independent film should be cheaper ...

Pushing Possibilities - bizecon.wordpress.com · 2 references

35 days ago by Ahmad Barirani

Things are going extremely fast on the Internet. But somehow, Google seems to be faster than everybody. Every day, a new application emerges from Google labs on top of older apps. Of course, all these new applications are aligned with Google’s main service: search. And when it comes to search, I hav ...

Singular Technologies - singulartechnologies.com · 1 reference