Case

Demand and Revenue Management: Case Questions

Case#1: The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues

Case Questions

1. Review the case details Exhibit 5 “Survey Questionnaire and Response Distributions” and Exhibit 6 “Buckingham’s pricing matrix worksheet.” Complete filling in the pricing matrix worksheet for Exhibit 6 as taking the role of Larry Buckingham.

2. Given the survey’s results, design a pricing scheme for the Springfield Nor’easters’ first season in order for a financial break-even. Explain how you derived the pricing scheme and list all assumptions made.

3. Research the actual pricing of tickets for the Springfield Cardinals or an equivalent minor league baseball team today. How does this compare to your proposed pricing scheme for the Springfield Nor’easters? For the differences in pricing, what reasons could possibly account for the pricing decisions today (i.e. global recession, sponsorship from angel investors, league policies)?

Case#2: Keurig at Home: Managing a New Product Launch

Case Questions

1. Should Keurig use a single K-Cup for all markets or should it launch the Keurig-Cup in the at-home market and continue to use the K-Cup in the commercial market?

2. What price for the brewer and for the portion pack (K-Cup/Keurig-Cup) do you recommend? Under your pricing strategy, how profitable are coffee sales for Keurig? How do coffee profits affect the brewer price?

3. Analyze Keurig’s marketing plan and launch strategy. Is the current plan sound? What suggestions would you offer?

Case#3: The Retailer Game

In a separate file of instructions

Case#4: Priceline.com: Name Your Own Price

Case Questions

1. Analyze the economic logic of “buyer driven” commerce of Priceline. How does Priceline initialize its airline ticket model?

2. How does Priceline.com utilize its current model in the other product categories including those specifically targeted by Priceline.

3. Explain...