Priceline.com Essay -- Economics Case Study e-commerce, solution

Priceline.com Priceline.com is an Internet social club that pioneered a unique type of e-commerce k instantern as demand solicitation system that enables consumers to use the Internet to save money on a wide range of wares and services while enabling sellers to generate additive gross. Using a simple and compelling consumer proposition of name your price, the consumer is in control of the product they wish to purchase. In the form of individual node offers guaranteed by a credit card for a particular product or service at a price set by the customer and communicate that demand directly to the participating sellers or to their privy databases. The participation works by allowing the consumers to agree to hold their offers open for a specified period of time to enable priceline.com to fulfill their offers from inventory provided by participating sellers. Once fulfilled, offers generally cannot be canceled. By requiring consumers to be bendable with respect to brands, s ellers and/or product features, the company enables sellers to generate incremental gross without disrupting their existing distribution channels or retail pricing structures.The company is grounded on the assumption of quick of scent self-interest. In other words, since individuals make rational decisions to earn the greatest satisfaction or the maximum fulfillment of their goals, Priceline.com has now revolutionized the market industry. By their name and lock your price strategy, more than and more consumers energize been able to maximize their satisfaction on differentiated products. The consumers motivation to spend their incomes to get the greatest benefit from the goods and services they can afford. Priceline.com helps them to achieve their goals. Since the inception of this internet-based company, millions of consumers were able to afford more with less expenditure on their goods. In addition, rational behavior varies among every individual because individual preference s, circumstances, and available information differ. Priceline.com offers various or differentiated goods and services in a broad range of products to purchase from. E-Commerce Pioneer Priceline.com Sells 20,000 Leisure Airline Tickets In Six Weeks. As ticket sales accelerated, priceline.com has become one of the peoples top 10 most-visited commerce Web sites. In its first six weeks of operation, pricelin... ...e expected rate of return is far great than the interest invested in producing advertisement. Moreover, they expect companies to support their business strategy so the other companies in return can generate greater revenue as well.Conclusively, Priceline.com has brought an exciting and provides other businesses with inspiration to follow their strategies. Many consumers have benefited from this Internet Company and as a result have saved money to spend on other extremitys. Now we have the excerption of choosing a price and giving countless vendors the chance to bid. For better or worse, this could transform the commission we think of shopping, as well as the way in which we do it. Conceivably, it could alter the nature of balance and power in the midst of vendors and consumers. In addition, it restructures long-standing capitalistic business and sales traditions. This mod business ensample appears to have the potential to give enormous new powers to people who want to buy things, since their price is being offered to many thousands, even millions, of possible sellers. The new business method venture is successful and it opens the doors for consumers who are tired of the glacial prices they have to pay.