9483
AiS
Session 2b
Joshua
Foster
Agenda
- Quick Case: Joy4Home Brands: Pricing Matters.
- Identifying Optimal Pricing Strategies
Degrees of price discrimination.
- Perfect price discrimination (last session).
- Menu-based priced discrimination.
- Taste-based priced discrimination (last session).
Menu-based priced discrimination.
Charging different prices based on the quantity or quality of a product.
Key feature: Customers self-select into different pricing categories based on their (unobservable) preferences.
Example: Airlines
- Consumer Type A: business traveler making short trips. WTP=800
- Consumer Type B: vacation traveler making long trips. WTP=400
Ticket option 1: "Unrestricted tickets" @ $800 each.
Ticket option 2: "Vacation special tickets" @ $400 each, requiring a span of two weeks between flights.
Joy4Home Brands: Pricing Matters revolves around a company preparing to launch novel houseware and industry-grade products.
- In a direct-to-consumer (DTC) channel, they plan to introduce two product lines: kitchenware products and storage containers.
- For industrial kitchens, they are exploring a cheaper version of their kitchenwares that customers would buy muliples of.
- The case discusses the challenges the company faces in determining the pricing for each market.
Objective: Identify optimal pricing strategies for these products given the information in the case.
| Group 1 | Calvin Zehr | Alan Hwang | Chaitanya Gandhi | Bella Natasha Diego | Judith Osemeke | Adam Meadows |
| Group 2 | Michael Schumacher | Ishi Khamesra | Akber Amanulla Khan | Sean Morris | Aliya Nazeer | Robert Gray |
| Group 3 | Kiera Treloar | Iain Smith | Josh Ge | Elisabeth Iannucci | Kendall Zhang | Silvia Pacheco Diaz |
| Group 4 | Princess Adeniran | Jennifer Estrada | Maro Egbedi | Mac Astritis | Sangeetha Sambamoorthy | Kayla Vargas |
| Group 5 | Ishani Adityan | Derek Adam | Sifan Wang | Valentina Efionayi | Sam Macy | Angelita Martin |
| Group 6 | Cherry Qian | Aanal Patel | Quoc Lap Nguyen | Olamide Adeboboye | Ramnik Minhas | |
| Group 7 | DHDan Hicks | Rio Baudisch-McCabe | Alice Wu | Aaditya Geed | May El Damatty |
Small Group Task
In your assigned groups, take the next 40 minutes to reflect on the In-class Assignment Questions posted to Learn for this quick case.
Be prepared to discuss your responses to these questions when time is up.