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

Priceline.com Priceline.com is an internet company that pi integrityered a unique type of e-commerce known as inquire collection system that enables consumers to use the Internet to save money on a wide range of products and services while enabling sellers to break incremental revenue. Using a simple and compelling consumer proposition of rear your price, the consumer is in control of the product they wish to purchase. In the form of respective(prenominal) customer offers guaranteed by a credit card for a exceptional product or service at a price circuit by the customer and communicate that demand directly to the participating sellers or to their private databases. The company works by allowing the consumers to agree to hold their offers free for a specified period of time to enable priceline.com to fulfill their offers from list provided by participating sellers. Once fulfilled, offers generally roll in the haynot be canceled. By requiring consumers to be flexible with respect to brands, sellers and/or product features, the company enables sellers to generate incremental revenue without disrupting their existing distribution channels or retail set structures.The company is grounded on the assumption of rational self-interest. In other words, since privates act upon rational decisions to achieve 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, to a great extent and more consumers cod been able to maximize their satisfaction on separate products. The consumers want 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 outgo on their goods. In addition, rational behavior varies among every individual because individual preferences, 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 air Tickets In Six Weeks. As ticket sales accelerated, priceline.com has become one of the nations top 10 most-visited commerce Web sites. In its first six weeks of operation, pricelin... ...e expected rate of return is farther greater 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 eat up benefited from this Internet Company and as a result have saved money to spend on other wants. Now we have the option of choosing a price and giving countless vendors the ch ance to bid. For break away or worse, this could transform the way we think of shopping, as well as the way in which we do it. Conceivably, it could alter the nature of balance and powerfulness between vendors and consumers. In addition, it restructures long-standing capitalistic business and sales traditions. This new business model appears to have the potential to give enormous new powers to commonwealth who want to buy things, since their price is being offered to many thousands, even millions, of contingent sellers. The new business method venture is successful and it opens the doors for consumers who are commonplace of the fixed prices they have to pay.