Price discrimination in seasonal business : an analysis of consumer price sensitivity
Marika, Päiväniemi (2019)
Marika, Päiväniemi
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201904245923
https://urn.fi/URN:NBN:fi:amk-201904245923
Tiivistelmä
The purpose of this thesis was to find out how to use pricing as a tool to influence the demand in seasonal business. The theoretical part of this research focused on the consumers’ willingness to pay and time as a part of pricing strategy.
Company X was used as a case company to be able to conduct the research in a business context. Company X operates in a seasonal, weather dependent business, selling consumer commodities. An online survey was done for one of the most sold products to find out consumer price sensitivity, and to determine whether purchase decisions could be influenced by price bundling instead of giving a direct discount for a single product.
The Van Westendorp price sensitivity method was used to find the optimal price range. Key results the range of acceptable prices, the optimal price point and the controlled use of these values to even out the demand. The results of the price sensitivity survey are analyzed within the theoretical framework.
The value of this thesis is monetary as maximizing profits in a very short selling period in seasonal business is crucial, and choosing the right price is one of the key drivers to success. Further research is required for wider product and service offerings, including the aspect of customer loyalty.
Company X was used as a case company to be able to conduct the research in a business context. Company X operates in a seasonal, weather dependent business, selling consumer commodities. An online survey was done for one of the most sold products to find out consumer price sensitivity, and to determine whether purchase decisions could be influenced by price bundling instead of giving a direct discount for a single product.
The Van Westendorp price sensitivity method was used to find the optimal price range. Key results the range of acceptable prices, the optimal price point and the controlled use of these values to even out the demand. The results of the price sensitivity survey are analyzed within the theoretical framework.
The value of this thesis is monetary as maximizing profits in a very short selling period in seasonal business is crucial, and choosing the right price is one of the key drivers to success. Further research is required for wider product and service offerings, including the aspect of customer loyalty.