Sacramento Business Professionals Networking Lunch
Featuring alumnus Assistant Professor Mike Palazzolo MBA 09

“The Evolution of Customer-Driven Pricing” 

Date, Time and Location:

Thursday, September 21, 2017
11:30 a.m. – 1:00 p.m.
Ten22, Old Sacramento

About the Presentation:

Join ​Graduate ​School ​of ​Management ​alumnus ​and Assistant ​Professor ​Mike ​Palazzolo ​MBA ​09 ​for ​a ​discussion ​of ​how ​companies ​are ​using ​technology ​to ​connect ​with ​customers, ​develop ​dynamic ​pricing ​and ​upgrade ​bidding, ​and ​optimize ​future ​pricing ​policy. Palazzolo is the first GSM graduate to rejoin our community as a tenure-track faculty member.

“Designing ​an ​Upgrade ​Bidding ​Program” 

The ​old ​pricing ​paradigm—in ​which ​firms ​set ​prices ​that ​are ​accepted ​or ​rejected ​by ​consumers—is ​quickly ​becoming ​obsolete ​for ​many ​goods ​and ​services. ​Technological ​advances ​have ​dramatically ​improved ​firms’ ​ability ​to ​process ​data ​and ​transact ​with ​customers. The ​result: ​pricing ​strategies ​have ​taken ​on ​new ​prominence ​in ​many ​settings, ​including ​dynamic ​pricing ​(transportation, ​sporting ​events), ​auctions ​(eBay) ​and ​“name ​your ​price” ​mechanisms ​(Priceline, ​eBay). ​Recently, ​airlines ​have ​combined ​these ​approaches ​in ​creative ​ways, ​allowing ​customers ​to ​bid ​on ​an ​upgrade ​to ​a ​better ​seat ​close ​to ​the ​departure ​date. 

​Palazzolo ​will ​walk ​us ​through ​the ​development ​process ​of ​an ​“upgrade ​bidding” ​pricing ​mechanism ​for ​an ​entertainment ​venue, ​starting ​with ​a ​look ​at ​the ​expected ​(by ​economic ​theory) ​pros ​and ​cons ​for ​customers ​and ​the ​firm. ​He ​will ​then ​explore ​how ​a ​firm ​might ​design ​an ​experiment ​to ​determine ​how ​customers ​respond ​to ​this ​pricing ​mechanism ​in ​practice, ​so ​that ​it ​can ​optimize ​its ​pricing ​policy ​for ​the ​future.