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 | Jehan Dhalwani | Damien Wu | Damon Le | Bella Anwan | Nora Arman |
| Group 2 | Mehika Kumbhkarni | Zichen Liu | Aabiyeh Parveen | Ev Cook | |
| Group 3 | Matthew Tewkesbury | Emilie Smit-de Bree | Callum Russell | Daniel Priezjev | |
| Group 4 | Devapriya Anitha Sreekumar | Sahana Kapur | Simon Okafor | Tillie Pham | |
| Group 5 | Udayan Sahai | Kriti Gupta | Gaurav Agarwal | Laila Saili |
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.