Newspaper / pricing / Reference Price / Segmenting / Service Plan / Transaction Costs / Unbundling / Usage Based Pricing

The Wall Street Journal Pay Per Article Coming

The Financial Times reports that the WSJ is considering unbundling its online publication to offer pay per article scheme and is working on a Micro-payment scheme. Currently WSJ offers subscription only pricing for its online version for $99/year and is available at a discount when bundled with its paper version. Previously I have written … Continue reading

Bundling / Reference Price / Unbundling

Going from unbundled to bundled

The reference price experiment my colleagues and I conducted recently, proved our hypothesis that people do not like unbundled pricing because their reference price for these was $0.00 but can be nudged towards unbundled pricing if their reference price can be improved. But what if the marketer who offered unbundled option wants to shift the … Continue reading

Airline / Baggage Fees / Behavioral Economics / Consumer Behavior / jetBlue / Reference Price / Segmentation

Unbundling the Airline – Measuring Customer Utilities for freebies

The last experiment I conducted was on pricing freebies and how Airlines or any other marketer can improve their customers’ perception of unbundling pricing by focusing on the reference price. The logical next step in the unbundling research seemed to me to find out the relative value of the components of the monolith and what … Continue reading

Airline / Baggage Fees / Behavioral Economics / Classes of Service / Unbundling

Ryan Air Unbundling the In Flight Toilet – “Loodicrous?”

Ryan Air, the pioneer in unbundled airline travel and the first one to charge baggage fees, has come up with the plan for next level of airline unbundling:  unbundle the facilities and charge passengers a pound each time they want to go to, as the British would say loo. Times Online quotes Ryan Air CEO … Continue reading

Airlines / Baggage Fees / Behavioral Economics / Consumer Behavior / Economic Model / Unbundling / Uncategorized

Unbundling the Airline – Charging for Water, Coffee and Soda

In August 2008 US Airways unbundled its in-flight service and started charging for soft-drinks. It charged $2 for soda and bottled water and $1 for coffee and tea. After six months, US Airways decided to stop the practice. US Airways took pride in its unbundled pricing model. The service did bring in revenue according to … Continue reading