Critical Thinking Questions
MAR 310 Principles of Sales
Professor John Mellon
September 12, 2009
What kind of pricing strategy do Disneyland and Walt Disney World follow? Should these destination resorts ever employ a discount pricing strategy? If so, when and why? If not, why not? Touted as the biggest overhaul of Disney's pricing strategy since Disney stopped charging separately for each ride in the late 1970s, these change promises to cause plenty ofhead scratching at the gates. With so many pricing options and combinations, Disney believes its strategy offers enough customizing choices that patrons can have it their way. Simply put, the more you play, the less you pay per day. (Albright) The pricing strategy that Disneyland and Walt Disney World use is volume pricing for the best value. The goal of volume pricing is to set a price that recognizes the value that customers place on product and as additional products is purchased the price decreases. For example, in the bullets below Walt Disney World believes that buying in volumegives the customer the best option, thus shown in the pricing. While a one day pass is pricedat $75, but after 3 days the price of each additional day drops drastically. The price differential between a 4 and 5-day ticket is only $3. The additional per day price after 5 days is a small amount of $2 per day.
1 day Disney World base tickets are $75
2 day Disney World base tickets are $148
3 day Disney World base tickets are $216, break on price at about $72 a day 4 day Disney World base tickets are $225, again, even cheaper at $45 per day 5 day Disney World base tickets are $228, almost same price as 4 day at $45 per day 6 day Disney World base tickets are $231, only $38 per day, extra day only $3 more. 7 day Disney World base tickets are $233, extra day for just $2! 8...