Cases & Simulations for Teaching
Special Issue on Teaching Revenue Management, INFORMS Transactions on Education, May 2009 (ed.)
INSEAD Cases & Simulations (available exclusively through ECCH)
Easy Profit
(2006, revised 2010, with M. Vena and V.Carabillo)
- EASY PROFIT: A REVENUE MANAGEMENT PILOT (606-022-1)
Product type: Case - EASY PROFIT: A REVENUE MANAGEMENT PILOT (606-022-4)
Product type: Supplement (Simulation/Game)
This case introduces the concept of revenue management as a tool to maximise profits and provide competitive advantage to firms in diverse industries. The case and accompanying simulation (606-022-4) are set in the airline industry, where revenue management originated. The objective of the exercise is to build intuition on how basic revenue management techniques work and under what circumstances they are most effective. The reader takes the position of revenue manager in charge of selling seats on an airplane. The goal is to devise a sales strategy for capturing the maximum rent from the market. Static and dynamic booking limit strategies are to be tested in the accompanying simulator.
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What Price Vertigo?
(2006, revised 2008) Case No. 506-055-1 (7 pages)
The case uses the example of U2's 2005 world tour to investigate price differentiation in the context of entertainment industries, and particularly multi-pricing in a capacity constrained environment. The objectives are: (1) discussion of price differentiation dimensions; (2) market segmentation; (3) demand modelling; (4) consumer surplus; (5) price optimisation with deterministic (linear) demand and various constraints (capacity, fairness); and (6) the marginal revenue rule. The case is also an opportunity to build small pricing models using Excel solver.
YAHOO! Pricing Search Engine Advertising
(2006, with Alex Dabbous)
- YAHOO!: PRICING SEARCH ENGINE ADVERTISING (506-056-1)
Product type: Case - YAHOO!: PRICING SEARCH ENGINE ADVERTISING (506-056-8)
Product type: Teaching note - YAHOO!: PRICING SEARCH ENGINE ADVERTISING (506-056-9)
Product type: Teaching note supplement software
The case discusses Yahoo!'s marketing services, and various types of advertisement. The main focus is on search engine advertising, one of the most important revenue sources for Yahoo! The market, Yahoo!'s pricing strategies and challenges are described. This case aims to introduce participants to several pricing and revenue management concepts: (1) building a revenue model; (2) customer segmentation; (3) product design; (4) bundling; and (5) pricing. One of the key merging concepts is opportunity cost based pricing. The case can also be used to discuss media rating measures (CPM (cost per thousand impressions) vs pay per click) and B2B (business to business) pricing strategies, such as contracts and auctions. A teaching note supplement (506-056-9) is available to accompany the teaching note.
Congestion Charging in London: Road Pricing to Control Emissions
Revenue Management at the Rolland Garros
- YAHOO!: PRICING SEARCH ENGINE ADVERTISING (506-056-1)
Contact
Ioana Popescu
Professor of Decision Sciences
INSEAD Asia Campus
1 Ayer Rajah Avenue
138676 Singapore
Tel: +65 67 99 53 43
Email: [email protected]