Purchase Solution

optimal pricing strategy

Not what you're looking for?

Ask Custom Question

You own a franchise of rental car agencies in Florida. You recently read a report indicating that 80% of all tourists visit Florida during the winter months in any given year, and that 60% of all tourists traveling to Florida by air rent autos. Travelers not planning ahead often have trouble getting a rental due to high demand. However, during non winter months tourism drops dramatically and travelers have no problem getting rental car reservations. Determine the optimal pricing strategy and explain why it is the best pricing strategy.

Purchase this Solution
Solution Summary

Determine the optimal pricing strategy and explain why it is the best pricing strategy.

Solution Preview

Seasonal pricing strategy will be optimal for this scenario. Rental car agency can charge higher prices during peak demand season and discounted prices during non-winter ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
Recent Feedback
  • "Thanks"
  • "Thanks"
  • "Very good! "
  • "thanks"
  • "Thank you!"
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Consumer surplus and optimal pricing strategy

    preferences, what is the optimal pricing strategy?

  • Economics

    What is dominant strategy for each dealer? Determine the optimal strategy for each firm. What is the optimal pay-off for each dealer? Explain briefly. b.

  • Project proposal for profit-maximizing: 4795-econ

    - Recommend an optimal pricing strategy at Odyssey Isle. Your proposal should specify the exact prices that should be charged to visitors and demonstrate that these prices will produce the maximum level of profits for Odyssey Isle.

  • More

    Discuss how Odyssey Isle's current and proposed pricing strategies affect consumer surplus. ? Recommend an optimal pricing strategy at Odyssey Isle.

  • Optimal pricing strategy

    325120 Optimal pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward.

  • Optimal Pricing Strategy Choice

    412547 Optimal Pricing Strategy Choice You own a franchise of rental car agencies in Florida.

  • Two part pricing strategy

    Determine the optimal two part pricing strategy. b. How much additional profit do you earn using a two part pricing strategy compared with charging the consumer a per unit price? a. Determine the optimal two part pricing strategy.

  • Pricing Strategies for Firms with Market Power

    Determine the optimal pricing strategy, and explain why it is the best pricing strategy. The optimal pricing strategy is to have premium pricing during the winter months and low pricing during non-winter months.

  • Two part pricing strategy for a store

    For a two part pricing strategy, the store should charge P = $32 Please see the attached file. A two part pricing strategy is featured.

View More Related Solutions