N EW! Pricing Simulation Universal Rental Car for courses in: strategy by john T. gourville, Tom nagle, and john hogan microeconomics operations management marketing
Pricing Simulation: Universal Rental Car Teaches the principles of pricing in a dynamic and realistic management environment. Students play the role of a regional marketing manager responsible for pricing a fleet of rental cars across cities in Florida. Can be used in class or as homework. Ideal for undergraduate and MBA courses in Marketing, Strategy, Microeconomics, and Operations Management. The process of sampling and adopting any of our online simulations is simple: 1. Call customer service at 1-800-545-7685 (1-617-783-7600 outside the U.S. and Canada) and request educator sample access. 2. If you adopt the simulation, you will be given a specific link to give your students. 3. Students access the simulation using the link you provide to them. Each student can pay for individual use online via credit card, or your institution can pay for all students in a single payment.
The simulation dashboard provides a high-level view of real-time information and navigation options. Universal Rental Car Pricing Simulation Approximate seat time: 1.5 hours Product #2093 Students prepare once (with how-to video, summary, and scenario-specific information); then each round of play requires students to analyze and set pricing decisions. your decisions prepare analyze decide decision history STUDENT DASHBOARD dashboard overview prepare price history market share Dashboard Overview - All Cities - October analyze unit sales Prices Market Share Unit Sales unive fleet Set decisions for November Weekday Price Tampa $46 $32 Orlando $41 $37 Miami $49 $36 Weekend Price Weekday Universal $44.33 Competitor $37.15 Advance Simulation log out credits high scores Developed in partnership with the Monitor Group and Forio Business Simulations. Weekend Universal $36.43 Competitor $31.57 Universal: 44% Competitor: 56% Unive Comp Students learn fundamentals of a segment-based pricing approach. Universal Fleet Size Universal Capacity Utilization Monthly Ne Students see how to optimize inventory through pricing to manage both stockouts and excess inventory. 38,344 vehicles Weekday: 94% Weekend: 71% $ Students must account for the likely competitive and market responses to their pricing decisions. log out credits high scores Students learn the nature of consumer sensitivity to changes in price. The simulation fosters a sense of competition among players by allowing students to view other students cumulative profit scores and notes on strategy.
Developed in partnership with Forio Business Simulations Authored by: John T. Gourville, Professor, Harvard Business School John Hogan, Group Leader, Monitor Group Tom Nagle, Group Leader, Monitor Group A market research report presents competitive and market data to provide the context for more informed decision making. decide A breakeven pricing tool allows students to learn fundamentals of marginal math calculations. rsal size capacity utilization monthly net income market research breakeven calculator prepare analyze decide Breakeven Calculator - All Cities Weekday Weekend $36 $38 $40 $42 $44 $46 $48 $50 $52 Breakeven change in volume 0.00% OCT Percent change in price 0.00% FLORIDA NOV Breakeven change in revenue 0.00% DEC JAN Breakeven change in volume Breakeven change in revenue 0.00% = 0.00% = (Change in Price:0.00) Contribution margin:22.27 + Change in price:0.00 Breakeven change in volume:0.00% + Price change:0.00% x (1 + Breakeven change in volume:0.00%) rsal: 829,157 etitor: 1,052,600 t Income Tampa Orlando Miami All Cities FEB MAR APR log out credits high scores Developed in partnership with the Monitor Group and Forio Business Simulations. MAY 1,941,519 JUN JUL AUG The simulation filters information based on the city selected. Students learn to account for demand differences across regions as they relate to pricing strategy. SEP Developed in partnership with the Monitor Group and Forio Business Simulations. The simulation includes 11 rounds (or months ) in which players enter prices. Each month, students react to prior decisions and assess/interpret data to reinforce learning. The simulation measures students on cumulative net income and forces them to account for cost structure in decision making. Each set of information displayed on the dashboard can also be exported to Excel for detailed student analysis.
Simple but powerful administration tools allow professors to set learning objectives for the simulation. ADMINISTRATION SCREEN Simulation is Open to Students Scenario A: Introductory Pricing Simulation Scenario B: Intermediate Pricing Simulation Scenario C: Advanced Pricing Simulation Leisure Demand Avg Price 100% Normal Curve Shape Normal Professors can adjust price sensitivity curve slopes to customize learning objectives. 75% Scenario Name (visible to students); Scenario C: Advanced Pricing Simulation 50% Scenario Description (visible to students); In this scenario, you set separate weekday and weekend prices in Tampa, Orlando, and Miami. Demand for cars varies Use Weekend Pricing Use Regions: Tampa Orlando Miami Demand Growth Include Demand Seasonality Competitor Price Strategy Capacity Constrain Orders Set Scenario Cancel No Growth Growing Demand Shrinking Demand Manage Capacity with Price Allow Capacity Changes Every Three Months 25% 0% $0 $20 $40 $60 $80 $100 Reset Business Demand Avg Price Normal Curve Shape Normal 100% 75% 50% 25% 0% $0 $20 $40 $60 $80 $100 Reset Preconfigured Introductory, Intermediate, and Advanced options allow customization based on MBA, Exec Ed, or undergraduate use. log out credit high scores Developed in partnership with the Monitor Group and Forio Business Simulations. Using these tools professors can: Set competitor price response to 1 to 4 strategies, manage capacity with price, tit-for-tat pricing, predatory pricing, or gradually increasing prices. Constrain and allow students to reallocate capacity across regions. Using these tools professors can: Simplify the simulation by focusing on only one segment. Set the overall complexity level of the simulation by focusing on one to three regions. Set the simulation to be one of pricing in an expanding, constant, or shrinking growth environment, based on course needs. Heighten complexity by adding demand seasonality into factors for students to consider.
Other Online Simulations from Harvard Business Publishing Finance: M&A in Wine Country In this simulation, students play the role of the management team at one of three wine producers: Starshine, Bel Vino, or International Beverage. Each player evaluates merger and/or acquisition opportunities among the three companies and then determines reservation prices, values targets, and negotiates deal terms before deciding whether to accept or reject final offers. This simulation is ideal as a capstone experience in first-year MBA finance courses and is also appropriate for elective courses in Mergers and Acquisitions, Valuation, Negotiation, General Management, and Strategy as well as in advanced undergraduate courses and executive education. #3289 Finance: Blackstone/Celanese This simulation recreates the landmark acquisition of Celanese AG by the Blackstone Group in 2003. Students take on the role of either Celanese or Blackstone and conduct due diligence, establish deal terms, respond to bids and counterbids, and consider the interests of other stakeholders. This internationally based scenario uses euros as currency and is ideal for secondyear MBA courses in Private Equity, Valuation, Due Diligence, Deal Structuring, and Mergers and Acquisitions. #3712 Leadership and Teams: Everest The dramatic setting of a Mount Everest summit expedition teaches group dynamics and leadership. Teammates must share information to maximize group achievement. This simulation is ideal for Organizational Behavior, Group Dynamics, and Leadership courses. #2650 Strategic Innovation: Back Bay Battery This simulation puts students in the role of product development managers, in which they must balance financial goals with the need to innovate, capitalize on new opportunities, and guard against disruptive technologies all while evaluating decisions in the context of nebulous market information and financial performance criteria constraints. #2656 Supply Chain Management: Root Beer Game This version of the classic Beer Game is enhanced by powerful administrative features: instructors can run any number of configurations simultaneously in the same class and results are tracked in real time on the administrator screens and are immediately available in debrief-ready graphs at the end of the game. Also included: how-to and debrief videos, Teaching Note, and a comprehensive facilitation guide. #3101 Operations Management: Benihana Based on the best-selling HBS case, this simulation covers fundamentals in service and operations management. Students are challenged to develop the most profitable overall strategy for the restaurant by improving throughput, optimizing bar and restaurant layouts, and reducing demand variability. #2653 Educators registered on our web site receive free educator copies and Teaching Notes. Apply now: www.hbsp.harvard.edu/educators Global Supply Chain Management In this online simulation, students make key supply chain management decisions. For the rollout of two models of mobile phones, students take control of managing product design, procurement, and production for four simulated years. #6107 Printed on recycled paper. Product #M13294 MC152800309 Customer service is available 8 am to 8 pm EST, Monday through Friday Phone: 1-800-545-7685 (617-783-7600 outside the U.S. and Canada) Fax: 617-783-7666 Email: custserv@hbsp.harvard.edu Web: www.hbsp.harvard.edu/educators