Melissa Chen, David Gruen,
How-Chin Liu, John Masline

Pros:
◦ Perfect price discrimination
◦ Little to no marginal cost to upgrade

Cons:
◦ Potential fixed costs
 Creating platform
 Advertising
 Extra customer support

Pros:
◦ Potential to pay less than the fixed price
◦ Only pay what you want to pay

Cons:
◦ Added stress from new process
◦ Makes Air New Zealand seem greedy
◦ Paying different prices for the same product

Bottom line: Increase in profits

Customer retention
◦ Potential new customers

Bids
◦ Amount of bids
◦ Dollar value of bids

Highly dependent on marketing strategies
◦ If they convince consumers that it’s beneficial for
them they can succeed

Even though it’s economically sound, it will
be extremely difficult to change public
opinion
◦ Comments show that not everyone thinks rationally,
nor like a corporation

Because of this, we think Air New Zealand…