Lamb Chapter 15 Web Exercise

15. Pricing

Vignette: Priceline operates a shopping service that illustrates how supply and demand determine price. The customer tells what he or she is willing to pay and Priceline looks for the best deal.

Featured URL: http://www.priceline.com

Fill 'Er Up

The cost of something has a definite affect on our decision to buy a product or service. If two items that look the same are side by side and one is less expensive than the other, most shoppers will be drawn to the bargain price unless there are certain factors that influence deciding otherwise. If we perceive all gasoline to be of essentially the same quality, then we will likely drive up to the pump where we pay less per litre. If however, we are convinced that we get better service or that one brand of gasoline is better for the car or the environment or that the location is more convenient - whatever is a motivating factor regarding this purchase, this will influence where we go to fill up.


Activity

Travel is an appealing activity but one that can vary in price considerably. There are a number of sites on the Web that offer search functions to find you the best deal for the destination you have in mind. Plan a trip for next July for two weeks to one place in each of the following three categories.

1. Use Priceline plus two of the travel web sites given in the Resource section that is selling tickets and accommodations.
2. Compare prices for air fares and package deals (air and accommodation) for each destination.
3. Which of the three sites gives the best deal for each trip?
4. Which of the travel sites that you used made it easiest for you to get the information you needed?

Resources:

Travel Sites

http://www.worldtravelguide.net/navigate/world.htm - World Travel Guide - travel information

http://www.expedia.com -  Expedia
http://travelocity.com - Travelocity
http://www.cheaptickets.com/ - Cheap Tickets
http://www.lowestfare.com - Lowest Fare

Portals and Online Malls

Traffick Guide to Consumer Portals - http://www.traffick.com/directory/portals/consumer.asp
Shopping Direct - http://www.shoppingdirect.com/
Cybermall - http://www.cybermall.com/
TownNet Online Malls - http://www.townnet.com/shopping/olmalls.html

Auctions

http://ca.auctions.yahoo.com/
http://www.ca.ebay.com/
http://onlineshopping.about.com/library/weekly/aa031297.htm?terms=online+auctions
http://www.auctionaddict.com/

Instructors: Optional Activities

As with all of the Web exercises, the exercise for Chapter Fifteen can be used as suggested or certain parts can be adapted to better suit your student population. You will want to estimate how much time is required to complete any part or all of the parts.  It will be helpful to give students a suggested time frame for completing their assignments. It will also help to determine how much credit might be given for the assignment.

1. Luxury Items

Snob appeal is a motivating factor when it comes to spending a lot of money on something. The following list contains thirty names that have been identified with luxury items - can you match each name with the types of products sold under that name?
 
 
Gucci Fendi Hugo Boss Bugatti Christian Dior
Montblanc Dolce & Gabbana T. LeClerc Givenchy Moet & Chandon
Joseph Schmidt Bulgari Cartier Cole Haan Celine
Ralph Lauren Michael Kors Robert Clergerie Hermes Louis Vuitton
Baccarat Ferragamo Porthault Chanel Pratesi
Marc Jacobs Tag Heuer Donna Karan John Varvatos John Galliano

What types of products or services are you willing to pay more for based on the name or reputation of that brand? Why?

Give ten items that you believe can be found cheaply that are just as good as the more expensive version.

2. Any door will do?

Portals present a collection of links on the Web as do Online Malls. Using the sites listed in the Resource section, compare several portals with the same number of malls. How are portals different from malls?  If you were looking for the best prices for toys - which would be more helpful to you? books? CDs or videos?

3. Going, Going, Gone

As you have read in Chapter Fifteen, there are a number of factors that affect pricing. Customer demands and the supply available have been impacted by an online phenomenon - auctions. Visit the auction sites in the Resource section.  If you had some hockey trading cards or a pair of ruby earrings you wanted to sell - how would you go about putting them in one of the auction sites?  What could you do to market these items in order to get the best price possible?
 

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