Case Study: Dynamic Pricing – Strategies for Enhancing Profitability|Course hero helper
Posted: February 19th, 2023
- Dynamic pricing is a collection of pricing strategies used by firms and organization to enhance profits. You will begin by exploring pricing techniques that operate in the market in real time. Then you will explore how auctions are employed in the search to find the value of goods and services.
Consult the following video before getting started:- The Ideal Auction. ( https://www.numberphile.com/videos/the-ideal-auction?rq=ideal%20auction )
- Instructions
Write a 5–7 page paper in which you:
- Compare and contrast surge versus congestion pricing. Provide a specific example of each currently in use.
- There are many types of auctions, each with strengths and weakness at uncovering the real price/value of an item. Compare and contrast how each of the following uncovers value and provide a specific example of how each uncovers value:
- The English auction and the Dutch auction.
- The sealed-bid first-price auction and the Vickery Auction.
- Auctions are widely used. Analyze an actual auction employed by each of the following:
- A state or federal government or an agency of a state or federal government.
- A for-profit business.
- For each, explain what type of auction is employed and how the auction solves the problem of finding the best price for the good or service.
- Read the Letter from Senator Warren to Fed on Wells Fargo FHC Status [PDF].
- Explain how an auction to sell the Wells Fargo consumer-facing banking division might be used to determine the value of the division.
- Include a recommendation on what type of auction might be used.
- Use five sources to support your writing, including one published within the last six months. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides.
- Your assignment must follow these formatting requirements:
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The file submitted in Blackboard must be an MS Word document or a PDF document.
The specific course learning outcome associated with this assignment is:
- Propose ways in which a company can use dynamic pricing to better uncover value and increase revenue.
- By submitting this paper, you agree: (1) that you are submitting your paper to be used and stored as part of the SafeAssign™ services in accordance with the Blackboard Privacy Policy; (2) that your institution may use your paper in accordance with your institution’s policies; and (3) that your use of SafeAssign will be without recourse against Blackboard Inc. and its affiliates.
SOLUTION
Introduction:
Pricing strategies are essential to maximize profit and maintain a competitive edge in the market. Dynamic pricing is a collection of pricing techniques that allow firms and organizations to adapt prices to changes in supply and demand. In this paper, we will compare and contrast surge versus congestion pricing and explore how auctions uncover the value of goods and services.
Surge pricing vs. Congestion pricing:
Surge pricing is a pricing strategy that adjusts prices based on demand, allowing companies to charge more during peak periods. Examples of surge pricing include ride-sharing services like Uber and Lyft, which charge higher fares during rush hour or when demand is high. Another example is airline tickets, where prices vary depending on the time of year, day of the week, and demand.
On the other hand, congestion pricing is a pricing strategy that aims to reduce traffic congestion in a particular area by charging drivers a fee to enter. The idea is to encourage people to use public transportation, carpool, or walk, reducing the number of cars on the road. One example of congestion pricing is the London Congestion Charge, where drivers have to pay a fee to enter the city center during peak hours. Another example is the Electronic Road Pricing (ERP) system in Singapore, where drivers have to pay a fee to use certain roads during peak hours.
The main difference between surge pricing and congestion pricing is that surge pricing aims to maximize profits by charging higher prices during peak periods, while congestion pricing aims to reduce traffic congestion by charging drivers a fee to enter a particular area.
Auctions:
Auctions are a common method of determining the value of goods and services. There are
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.