Improving revenue performance with third-degree price discrimination in the cruise industry

Namin, Aidin; Gauri, Dinesh K.; Kwortnik, Robert J.

doi:10.1016/j.ijhm.2020.102597

Cited by 16 publications

(10 citation statements)

References 73 publications

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“…This may be due to several factors. For example, younger shoppers may be aided by parents, guardians or other older adults who are guiding the customer journey and related behaviors (Namin et al , 2020a, 2020b). Because older consumers are also in Segment 1 in both phases of the pandemic (though consumers aged 46–65 shifted to Segment 2 during the pandemic), the older consumers may have influenced the process for younger consumers.…”

Section: Resultsmentioning

confidence: 99%

“…The questionnaire follows the general search-source questions related to buying a new automobile that were developed by Ratchford et al (2003). Given the role demographics play in consumer choice (Namin et al , 2020a, 2020b), the respondents were also asked demographic questions related to the search for a new automobile following Jang et al (2017). To ensure a 95% confidence level (margin error of 0.05) with a population standard deviation of 0.4, a minimum of 246 responses would be required for each sample.…”

Section: Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Driving a difference: the role of the Covid-19 pandemic in U.S. consumers’ information search behaviors and purchasing of Japanese automobiles

Namin

Ketron

2022

JPBM

Self Cite

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Purpose While prior research has investigated factors that predict consumers’ information search behaviors as they relate to automobiles, such studies were conducted prior to the COVID-19 pandemic. Given that the pandemic has necessitated lockdowns, social distancing, business closures and other disruptions to normal shopping activities, consumer information search behaviors have also been substantially altered as the psychological distance between consumers and marketers has increased. Thus, this study aims to examine these changes and identify patterns of search behavior for a major durable product: automobiles. Design/methodology/approach Using survey data from before and during the pandemic, the study implements Finite Mixture Modeling to unveil latent segments of U.S. consumers’ search behaviors and choices for Japanese automobiles. This analytic method enables capturing consumer unobserved heterogeneity through mixing probabilities guided by individual characteristics. These segments are determined based on consumers’ information search for online and offline marketer-controlled and nonmarketer-controlled sources. Findings The study identifies that two segments of consumers emerge both prior to the pandemic and during the pandemic. These empirically validated findings indicate that the pandemic has led to shifts in consumers’ information search behaviors for Japanese automobiles by relying more on nonmarketer-controlled sources of information. Originality/value This work is among the first comprehensive empirical analyses of consumer search for a major durable product by comparing pre- and during pandemic patterns. Using analytics and econometrics, the first-hand analysis findings offer meaningful implications for marketers and product managers in the automotive industry.

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Section: Resultsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Driving a difference: the role of the Covid-19 pandemic in U.S. consumers’ information search behaviors and purchasing of Japanese automobiles

Namin

Ketron

2022

JPBM

Self Cite

View full text Add to dashboard Cite

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“…Second-degree price discrimination is also based on ancillary indications, as the seller lacks sufficient market data. Third-degree price discrimination is another classification that occurs when miscellaneous charges are allotted to a diverse group of customers [8]. Indirect price discrimination tactics include quantity discounts, coupons, performancebased discrimination, bundling, and non-linear pricing.…”

Section: Pricing During the Pandemicmentioning

confidence: 99%

Research on Airline Strategy under COVID-19: Flight Pricing and Human Resources Perspectives

Dai¹,

Xing²,

Yan³

et al. 2023

BCPBM

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The COVID-19 pandemic has led to a global recession in the economy. People travel less due to stricter restrictions set by governments worldwide and fewer business activities due to the spread of the disease. This means that the airlines will receive a sharp decrease in income, which is a disaster for them because the cost is inelastic. To help change the situation of the airlines, this paper presents a calibration method based on the data of Chinese airlines and international flight data. The proposed method contains three parts: long-term price strategy, including pricing setting for domestic and international flights; new ways of price discrimination and pricing differences pushing up the demands, the new policies for the flight attendants, including wearing masks and introducing policies to prevent the virus from spreading. The experimental method’s result shows that COVID-19’s impact on airlines can be significantly improved with an accurate way to regain customers’ trust and willingness to travel by air compared to the pre-COVID method of working.

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“…The major part of research regarding dynamic pricing and revenue management has been done within traditional revenue management industries, such as airlines, hotels, and rental car companies (Denizci Guillet & Mohammed, 2015;Wang et al, 2015). Nevertheless, a number of studies have covered the non-traditional industries, such as attractions (e.g., Heo & Lee, 2009;Hoseason, 2006;Leask et al, 2013Leask et al, , 2000, national parks (e.g., Mejía & Brandt, 2015;Schwartz et al, 2012), cruise and ferry lines (e.g., Hoseason, 2000;Li et al, 2014;Namin et al, 2020;Sun et al, 2011), resorts (e.g., Pinchuk, 2006), golf clubs (e.g., Licata & Tiger, 2010;Noone et al, 2019), entertainment (e.g., Choi et al, 2015;Volpano, 2003), and sporting events (e.g., Barlow, 2000;Courty & Davey, 2020;Drayer et al, 2012;, 2014Shapiro et al, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Dynamic pricing assuming demand shifting: the alpine skiing industry

Malasevska

Haugom

Hinterhuber

et al. 2020

Journal of Travel & Tourism Marketing

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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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Improving revenue performance with third-degree price discrimination in the cruise industry

Cited by 16 publications

References 73 publications

Driving a difference: the role of the Covid-19 pandemic in U.S. consumers’ information search behaviors and purchasing of Japanese automobiles

Driving a difference: the role of the Covid-19 pandemic in U.S. consumers’ information search behaviors and purchasing of Japanese automobiles

Research on Airline Strategy under COVID-19: Flight Pricing and Human Resources Perspectives

Dynamic pricing assuming demand shifting: the alpine skiing industry

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