Publications
Publications
- May 2015
- HBS Case Collection
Pricing in a Digital World (2015)
By: John Gourville
Abstract
Dynamic pricing, especially as practiced by Uber and Lift, seems to be all the rage. In this case, we look at five interesting applications of dynamic price and price customization, each made possible by advances in digital technology. These range from the online purchasing of ski lift tickets, to parking meters that adjust price based on local supply and demand, to continuously changing drink prices in clubs/bars as a function of what drinks are proving more or less popular. Across these five pricing applications, students are asked to assess the goals of each of these pricing practices and the degree to which the goals will likely be met. In the process, they are asked to assess or predict likely consumer reaction to these practices, getting at the concept of "pricing fairness." In the end, students should recognize that pricing can be about more than just profit or revenue maximization. Rather, the pricing practices explored in this case can be used to deliver real value to consumers and to optimize around a scarce resource.
Keywords
Pricing; Marketing; Dynamic Pricing; Price Customization; Information Technology; Price; Entrepreneurship; Customization and Personalization; Product Marketing
Citation
Gourville, John. "Pricing in a Digital World (2015)." Harvard Business School Case 515-104, May 2015.