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You will set up weekday and weekend prices for three regions, Orlando, Miami and Tampa, for each month of a year. Factors that can be
You will set up weekday and weekend prices for three regions, Orlando, Miami and Tampa, for each month of a year. Factors that can be taken into account in the pricing setting may include seasonality of demand, differing price sensitivities for business and leisure travelers, and realistic competitive responses to the pricing decisions. Demand for rental cars can vary depending on the month and whether the location is more popular with business or leisure travelers. Unrented cars have associated holding costs while running out of cars is lost opportunity for profit. You can make periodic inventory adjustments among the locations to match anticipated demand. The market for rental cars in Florida is intensely competitive and you must also consider the likely competitive response to their pricing decisions. Ultimately, you will analyze the economic, seasonal, and competitive forces of the rental car market and develop a pricing strategy to maximize the cumulative profit for the firm. 2. What pricing strategy did you use to achieve your main objective? 3. How did your strategy change in order to achieve your objective? 4. What actions did you take to accommodate different needs from different customer segments (in different cities, for distinguished use, etc.)? 5. What actions did you take to manage inventory and capacity? How were they linked to profit and market share
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