Unformatted text preview: market would
bear. Airlines long ago developed sophisticated software programs to predict demand and set prices, resulting in as many
different price points per flight as passengers. But now, thanks to the Internet, the state of the art is changing prices on the
fly in response to real-time customer data being captured.
Still, strategic pricing is a relatively untested concept outside the airline, financial and retail industries. I n a survey of its
members by the Professional Pricing Society, 30 percent of respondents said they priced new products by mirroring their
nearest competitors, and another 22 percent set new-product prices to recover costs and tack on a profit. Only 18 perc ent
said they did customer research to determine the value of the product or service to potential customers. And when it
comes to Internet pricing, 40 percent said they simply mimic the pricing of their offline sales channels, and 28 percent
responded that they don't have an Internet strategy at all.
W hy so many laggards? Part of the reason is that the dot-coms, initially not under much pressure to make a profi...
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This document was uploaded on 01/19/2014.
- Fall '14
- The Land