This post will tell you why B2B pricing is interesting, at least to me. (B2B being business to business marketing). I’ll point to some useful advice. That said, the advice also illustrates the conceptual challenges with pricing in channels. The challenges are so significant that it is sometimes hard to keep clear what is being…
Category: Pricing
Two-Part Tariffs and Disneyland
Interesting questions often precipitate (good) academic research. A great question is “why does Disneyland not make you pay for each ride”. This is the setup for Walter Oi’s examination of pricing back in 1971. Oi asks “If you were the owner of Disneyland, should you charge high lump sum admission fees and give the rides…
Price Wars
The problem of price wars is a significant one for businesses. The Problem of Price Wars Consumers generally love price wars. It is possible for such conflicts to hurt consumers long-term but in the short-term lower prices share more of the value created by the business. This makes consumers happier. Managers can more easily see…