E-Commerce & # 8211 ; Priceline.Com Essay, Research Paper

Priceline.com is an Internet company that has pioneered a alone type of e-commerce known as? demand aggregation system? that enables consumers to utilize the Internet to salvage money on a broad scope of merchandises and services while enabling Sellerss to bring forth incremental gross. Using a simple and compelling consumer proposition of? call your monetary value, ? the consumer is in control of the merchandise they wish to buy. In the signifier of single client offers guaranteed by a recognition card for a peculiar merchandise or service at a monetary value set by the client and communicate that demand straight to the take parting Sellerss or to their private databases. The company works by leting the consumers to hold to keep their offers open for a specified period of clip to enable priceline.com to carry through their offers from stock list provided by take parting Sellerss. Once fulfilled, offers by and large can non be canceled. By necessitating consumers to be flexible with regard to trade names, Sellerss and/or merchandise characteristics, the company enables Sellerss to bring forth incremental gross without interrupting their bing distribution channels or retail pricing constructions.

The company is grounded on the premise of? rational self-interest. ? In other words, since persons make rational determinations to accomplish the greatest satisfaction or the maximal fulfilment of their ends, Priceline.com has now revolutionized the market industry. By their? name and lock your monetary value? scheme, more and more consumers have been able to maximise their satisfaction on differentiated merchandises. The consumers want to pass their incomes to acquire the greatest benefit from the goods and services they can afford. Priceline.com helps them to accomplish their ends. Since the origin of this internet-based company, 1000000s of consumers were able to afford more with less outgo on their goods. In add-on, rational behaviour varies among every person because single penchants, fortunes, and available information differ. Priceline.com offers assorted or? differentiated goods and services? in a wide scope of merchandises to buy from.

? E-Commerce Pioneer Priceline.com Sells 20,000 Leisure Airline Tickets In Six Weeks. ? As ticket gross revenues accelerated, priceline.com has become one of the state? s top 10 most-visited commercialism Web sites. In it? s foremost six hebdomads of operation, priceline.com sold more than 10,000 tickets. Gross saless have been monumental with a recorded 1,000-plus-ticket sale in a individual twenty-four hours. Gross saless with an norm of one ticket sold every 70 seconds. With its leisure air hose ticket service, priceline.com collects consumer demand and helps air hoses make full 1000s of empty seats every hebdomad on their domestic and international flights. Consumers merely state priceline.com the location, the day of the month they want to go, the monetary value they? re ready to pay and the major recognition card they? ll usage to vouch their petition. Consumers so receive an reply from priceline.com in one hr for domestic travel, or 24 hours for international travel. The? name-your-price? purchasing service that launched in April, sold a record 20,000 tickets online in the last six hebdomads.

In another article titled, ? After First 45 Days, Priceline.com? s New Car Gross saless Pass $ 2 Million Mark In New York Market Test, ? Priceline.com launched a new auto purchasing service in the New York metro country in July of 1998. The service enables purchasers to call the exact auto or truck they want, the monetary value they want to pay and the counties they are willing to go to in order to take bringing of their new auto. However, all clients must either hold their ain funding or pay hard currency for their new autos. The funding program is merely a bound in the market trial ; priceline.com now has a funding option that enables consumers to call their ain monthly payment program. The patented e-commerce system has attracted 1000s of auto purchasers and has sold more than $ 2 million worth of new autos merely 45 yearss after establishing in its first trial market.

Last, there is an article titled, ? Name Your Own Monetary value For Gasoline On The Internet, so Get Your Price At A Local Gas Station. ? Since May 20th, Priceline Webhouse Club, a accredited affiliate of priceline.com, launched a new service that makes it possible for drivers to merely disregard the monetary value at the pump. Alternatively, they can travel to priceline.com on the Internet and call their ain monetary value for up to 50 gallons of gas a month. After locking in their monetary value in 60 seconds or less, drivers can acquire their gas at local major-brand gas Stationss selected by Priceline Webhouse Club. Drivers can anticipate to salvage 10 to 20 cents a gallon, perchance even more.

Both purchasers and Sellerss have benefited from this new construct of calling your ain monetary value for concern minutess. The members of Priceline.com are subjecting testimonies of how much they? re salvaging on airfares for leisure, concern, and holiday travels. Sellers can travel extra stock list at will without viing with their ain retail monetary values or interrupting their established distribution channels. Buyers on the other manus, acquire the bang of calling their ain monetary value for quality merchandises and services. In add-on, priceline.com has joined confederation

with other internet-based companies every bit good to show new ways in which the Internet can present even greater value to consumers.

I believe Priceline.com is a alone new signifier of commercialism that? s a win/win for Sellerss and purchasers. Priceline.com is among the first of a new coevals of e-commerce solutions that deliver on the promise that the Internet can develop compelling consumer benefits alone to the medium. Their radical new manner of making concern alleviates consumer satisfaction and opportunism. In other words, consumer? s fringy benefit exceeds their fringy cost. So, persons have small to give in their picks every bit good as their determinations.

Until late, the Internet was a solution chiefly about convenience when shopping online for books, package, and music. Priceline.com is about salvaging money on the mundane points for 10s of 1000000s of consumers, get downing with food markets and now, gasolene. With the rising prices of gas monetary values consumers are actively looking for alternate ways to cut down the monetary values they? rhenium paying. More than half of all the drivers now say that monetary value ever or often dictates their choice of gas Stationss. Priceline.com offers consumers to make something about the high cost of gas. OPEC was a force to increase the cost of gas. Now, the Internet is the new counter-force to take down it. What better clip to salvage so now!

However, the drawbacks to this advanced service are the deceitful activity prevalent in internet. The first clip you come to the Priceline.com Web site to call your monetary value for gas, you have to subject your designation figure on the dorsum of one? s priceline gas card along with a major recognition card or debit card history figure. The job is single designation or recognition cards are being stolen for others personal entree or usage. It is particularly rampant on the Internet and many people have become victims of stolen individualities.

Another job is that consumers have been kicking about the cost-effective monetary values. One noted that? you wear? T know what you? re purchasing until it? s excessively late. ? That is because your recognition card is charged automatically the sum of your offer one time Priceline finds person to accept it. Some people like to spread out their skylines for an alternate airdrome including off-peak hours, smaller planes, and perchance the sort of flight category. Unfortunately opportunities like that are non executable and the consumer is stuck paying for an air hose they are non satisfied with.

Priceline.com represents an oligopoly, a market dominated by a few big manufacturers of a homogenous or differentiated merchandise. Specifically, Priceline.com is a? differentiated oligopoly? because it is a consumer goods industry. The company is presently selling multiple services to its Sellerss across three distinguishable merchandise classs: a travel service that offers leisure air hose tickets, hotel suites and rental autos ; an car service that offers new autos, and a personal finance service powered by pricelinemortgage ( a licensee of priceline.com and a subordinate of a federally charted thrift ) that offers place refinancing and place equity loans.

Priceline.com has besides merged and joined confederation with other growing of dominant houses via Internet. It has merged with Travelcity.com to increase their market portion, enabling the new and larger manufacturer to accomplish greater economic systems of graduated table. In add-on, a larger house may hold greater flexibleness to command market supply. If there is a more abundant supply, the purchasers may be able to demand and obtain lower monetary values. More significantly, amalgamations are able to bring forth greater production, therefore increasing gross for the company.

In footings of the R & A ; D expenditures Priceline put their money on advertisement and commercials to pull its clients. To acquire incremental concern a part of the money is used in advertisement to cut down the cost of the consumer? s demanding monetary values. In making so, Priceline? s fringy benefit exceeds the fringy cost. The expected rate of return is far greater than the involvement invested in bring forthing advertizement. Furthermore, they expect companies to back up their concern scheme so the other companies in return can bring forth greater gross every bit good.

Conclusively, Priceline.com has brought an exciting and provides other concerns with inspiration to follow their schemes. Many consumers have benefited from this Internet Company and as a consequence have saved money to pass on other wants. Now we have the option of taking a monetary value and giving infinite sellers the opportunity to offer. For better or worse, this could transform the manner we think of shopping, every bit good as the manner in which we do it. Conceivably, it could change the nature of balance and power between sellers and consumers. In add-on, it restructures long-standing capitalistic concern and gross revenues traditions. This new concern theoretical account appears to hold the possible to give tremendous new powers to people who want to purchase things, since their monetary value is being offered to many 1000s, even 1000000s, of possible Sellerss. The new concern method venture is successful and it opens the doors for consumers who are tired of the fixed monetary values they have to pay.