Week 13 Discussion Questions
Which pricing strategies does Airbnb use?
Airbnb started using dynamic pricing which is offering new price tips daily based on changing market conditions which was stated in the article
Does the number of reviews matter for an Airbnb host?
The number of reviews does matter because people are always looking for a great experience, so a higher review number along with better comments the more people will stay. The more people that stay will help the company charge more for the listing since people will pay more for better services. This will allow Airbnb to become an outstanding seller in the long run.
The article mentioned the various attributes affecting an Airbnb rental list. Which attribute matters the most? Why?
Certain photos, location, access to wifi, size of rental are the various attributes affecting the rental list. It’s hard to say which attribute means the most because individuals are typically looking at all of these and weighing the pros and cons of each rental. Photos help increase or decrease the likelihood of someone renting because people like to see what they are going to be staying in the the quality of the location, access to wifi, and the relative size of the rental. All of the attributes are just as important to the other but I would say having pictures is one of the bigger attributes.
How does the machine-learning model help a host manage the rental list?
This model helps a host manage the rental list because it helps understand what the best price for the housing would be to gain the most customers. In this, the model will use location, recency, and similarity to help determine the best prices. All of these help the hosts understand what people are looking for in the prices they feel is best for the services they will be receiving.
Listed below are a series of pricing strategies/polices. Place them onto the correct section of the matrix and explain you choose that strategy.
ECONOMY
Walmart was placed here because they are always looking to offer the lowest prices. They even made a savings catcher for their customers which lets them scan in receipts to make sure they had gotten the lowest prices. If they didn’t then Walmart will give them the different they paid if it wasn’t to be used on their next purchase.
Burger King is a fast food restaurant that provides the lowest prices for people to eat at the lowest cost while on a time crunch
Holiday Inn is trying to keep there prices the lowest during the winter seasons because this is the time traveling season isn’t high compared to the summer times.
PENETRATION
Cundard will be giving low prices for their new cruise ships but eventually the prices will go up from their cheap cruises
Cable TV will offer lower prices moving into a new area to achieve more customers at a quicker pace but eventually will raise the prices.
SKIMMING
Nokia will release their new design at a high price but as the years come and go they will lower the prices because it will not be a new design anymore- meaning consumers are going to the next big thing.
Airbnb started using dynamic pricing which is offering new price tips daily based on changing market conditions which was stated in the article
Does the number of reviews matter for an Airbnb host?
The number of reviews does matter because people are always looking for a great experience, so a higher review number along with better comments the more people will stay. The more people that stay will help the company charge more for the listing since people will pay more for better services. This will allow Airbnb to become an outstanding seller in the long run.
The article mentioned the various attributes affecting an Airbnb rental list. Which attribute matters the most? Why?
Certain photos, location, access to wifi, size of rental are the various attributes affecting the rental list. It’s hard to say which attribute means the most because individuals are typically looking at all of these and weighing the pros and cons of each rental. Photos help increase or decrease the likelihood of someone renting because people like to see what they are going to be staying in the the quality of the location, access to wifi, and the relative size of the rental. All of the attributes are just as important to the other but I would say having pictures is one of the bigger attributes.
How does the machine-learning model help a host manage the rental list?
This model helps a host manage the rental list because it helps understand what the best price for the housing would be to gain the most customers. In this, the model will use location, recency, and similarity to help determine the best prices. All of these help the hosts understand what people are looking for in the prices they feel is best for the services they will be receiving.
Listed below are a series of pricing strategies/polices. Place them onto the correct section of the matrix and explain you choose that strategy.
ECONOMY
Walmart was placed here because they are always looking to offer the lowest prices. They even made a savings catcher for their customers which lets them scan in receipts to make sure they had gotten the lowest prices. If they didn’t then Walmart will give them the different they paid if it wasn’t to be used on their next purchase.
Burger King is a fast food restaurant that provides the lowest prices for people to eat at the lowest cost while on a time crunch
Holiday Inn is trying to keep there prices the lowest during the winter seasons because this is the time traveling season isn’t high compared to the summer times.
PENETRATION
Cundard will be giving low prices for their new cruise ships but eventually the prices will go up from their cheap cruises
Cable TV will offer lower prices moving into a new area to achieve more customers at a quicker pace but eventually will raise the prices.
SKIMMING
Nokia will release their new design at a high price but as the years come and go they will lower the prices because it will not be a new design anymore- meaning consumers are going to the next big thing.
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