Changes in a company’s pricing strategy have the potential to influence profitability. Data from choice-based conjoint questionnaire were used to estimate revenue-maximizing dynamic prices accounting for both demand shifting and market expansion. The results show that dynamic prices induce greater demand and could increase revenue by 0.5% to 7.5%. Moreover, skiers have a strong preference and higher willingness-to-pay for good weather-related skiing conditions, suggesting that skiers prefer skiing during the midweek at a higher price, instead of on the weekend, if the skiing conditions are better in the midweek. Relevant implications are provided for practitioners.

Dynamic pricing assuming demand shifting: the alpine skiing industry

Hinterhuber, Andreas;
2020-01-01

Abstract

Changes in a company’s pricing strategy have the potential to influence profitability. Data from choice-based conjoint questionnaire were used to estimate revenue-maximizing dynamic prices accounting for both demand shifting and market expansion. The results show that dynamic prices induce greater demand and could increase revenue by 0.5% to 7.5%. Moreover, skiers have a strong preference and higher willingness-to-pay for good weather-related skiing conditions, suggesting that skiers prefer skiing during the midweek at a higher price, instead of on the weekend, if the skiing conditions are better in the midweek. Relevant implications are provided for practitioners.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3733556
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