The Power of Purple Pricing #HBR – how about sustainability? See my comments
May 9, 2013 Leave a comment
Sandeep, Jeff, Interesting thoughts.
Imagine what will happen to the airline industry if they were to adopt this approach. Ofcourse, customers would love it. Its also great from a perceived value perspective, but is it sustainable as a business – if so for how long?
If the cost base is increasing and competition has already flattened the margins in few industries, opening up pricing models like this might make business go down. Its not that I’m not supporting the dutch auction or the purple pledge model, its just that sustainability might be an issue in few industries ie airline. If you have any examples in such industries, please do share.
Just like the stock market analysis that potential buyers use, perhaps other industries could use such analysis using real-time analytics from Big-data, In-memory computing etc to give some information to customers to help them fix a price point that’s not completely off the pricing window.