Consumer Behaviour Case study Priceline.com

Priceline approach is truly unique, and, back in 1998, it has indeed anomalous marketing buyer system upside down. Jay Walker was the trailblazer of name-your-price concept, which can be interpreted as allowing people to flash back up prices for products or gos. The model was primarily based on shifting power into the hands of consumers and away from the companies; and, fit to important- supposeing revenues of 482 million during the off adjust year; it [concept] really worked. The judgment of the danger lay in providing solutions to various needs of customers crosswise the universe through application of new Internet technologies. It was overly 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 eld since the foundation and pre-announced failure in 2002, the association does not suffice as peachy as expected, though does not look bad on paper either. There has been substantial return in bookings comparing to last year and impressive evolution 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 set segment, were actually attracted to the pricing unveiling scheme, as for the first succession 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 legal age of the customers were not realizing o r unsounded only later is that they were no! t really setting up prices, but only give tongue to how much they were automatic 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: OrderCustomPaper.com

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