Differential Pricing - Multex.Com Presented by Group 3
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Differential Pricing - Multex.Com Presented by Group 3 Presentation Transcript

  • 1. Differential Pricing - Multex.Com Presented by Group 3 Ashish Khamar David Kleinman Ken Song Dallas Thornton Marck Vaisman
  • 2. Overview of Multex.com
    • Electronic data service provider
      • Providing financial information
    • “ Multex Investor” service
      • A part of Multex’s services for individual investors
      • Information services related to stocks, funds, and personal finance
      • Investment research reports available through Multex Investor
        • Investment banks
        • Brokerage firms
        • Third-party research providers (e.g., Multex.com)
  • 3. Overview of Multex.com (Con’t.)
    • Current pricing structure
      • Some free reports
      • Others are priced by Multex.com
    • Pricing structure should be:
      • Based on the consumer’s demand
      • Consumer’s appreciation for the information
        • Not based on the marginal cost
    • Two options to consider:
      • Bundling
      • Versioning
  • 4. Bundling
    • Bundling:
      • Offering a package of services at one fixed price
    • Current Mutex’s pricing:
      • No bundled services
      • Pay-per-view approach to pricing
  • 5. Bundling (Con’t.)
    • New pricing Strategy:
      • Bundling various information at one rate
        • Demands for individual financial information goods is variable based on…
          • Current market and industry trends
          • Customers’ different valuation based on the trends
        • Negotiate pricing with its information suppliers
        • Set the price at a profitable level
          • Analyzing previous customer utilization of the information
  • 6. Bundling (Con’t.)
    • Bundling Example for Multex Investor
      • Values of customer “A”
        • Telecomm industry research report: $20
        • Company information of AT&T and MCI: $10 for each
      • Values of customer “B”
        • Telecomm industry research report: $10
        • Company information of AT&T and MCI: $20 for each
      • Revenue:
        • Sell them separately,
          • Maximum pricing for each report: $10
          • Total revenue: $60
        • Bundling the data into one package
          • Pricing it at $40 for a package
          • Total revenue: $80
  • 7. Bundling (Con’t.)
    • Bundling Pricing Options:
      • Bundle financial data of different categories (e.g. industry and company) into one price.
      • Bundle access to the entire data set and price based on usage (e.g. articles per month)
      • Maintain the individual-article based pricing availability
        • In order to maintain the customer base of investors
        • While pushing frequent users to a bundled plan
          • Eventually, this individual-information-based pricing can be phased out
  • 8. Versioning
    • Versioning:
      • Various customers’ appreciations for the same information
      • Capitalize on each customer’s individual demand
    • Time-based versioning
      • Degradation of perceived value of information over time
      • Information could be priced on a degrading time scale
  • 9. Versioning (Con’t.)
    • Versioning Example for Multex Investor
      • Price a report at $50 for the first week, $40 the next week, $30, $20, and so on until it reaches a terminal level
      • Let the individual customer can decide when to purchase the information
        • Customer “A” values the information at $50
          • He will likely buy in the first week
        • Customer “B” values it at $40
          • He will likely wait until the price reaches that point
  • 10. Questions??