PRICELINE.

COM:
CHANGING BUSINESS IN THE NEW MILLENNIUM?
PRESENTED BYARCHANA RAY SUMALIN NAYAK MADHAWI RAJAN SUBHALAXMI NAYAK
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EVOLUTION OF STORES
2001:E-SHOPPING 1990:WAREHOUSE STORE 1979:DISCOUNT STORE
1959:RETAILING INSTITUTION 1901:DEPARTMENTAL STORE

1801:SPECIALITY STORE
1701:HOME-MADE
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DEPARTMENTAL STORE TO INTERNET

Introduction of departmental stores

Aggregation of goods
Accommodation of social needs Grouping of stores More goods in one location

(Eg-Mall of America, Minneapolis) Introduction of E-Shopping (Amazon.com,Priceline.com,NexTag.com)

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TRADITIONAL METHODS
Limited to specific area Limited working hours

ONLINE METHODS
Global Connectivity 24*7 service Maintenance of large catalogues Easy and cost effective setup Security Threats Lack of active experience Product category risk Lack of socializing

Promotion of limited
products More infrastructure required No privacy and security issues Active shopping experience No product category risk Good social experience
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Priceline.com: An insight
A company and a commercial site
Online auction site Bids on non-unique items

Benefits sellers than consumers

Example Airline tickets

Hotel rooms
Groceries Telephone time
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PROS
Best chance of getting the best price

available
Booking at the last minute Guarantees the lowest price

Huge Savings

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CONS
Unaltered dates Consumers treated as commodities No control over flight times and routes

Cant get specific hotel

Cant specify specific lender or dealer

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NexTag.com
Bidding on

computers,electronics,books,software and movies

Get a list of sellers and their suggested prices Consumers pick the merchant and drive

prices down
Check regular prices to get a good deal
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Is Priceline.com really changing business in the new millennium?

The watchword of the company is Name your own price!.Although it provide multiple options for customers to make last minute deals ,they dont let customers to select according to their own choices.So it has a lower customer value.

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CONCLUSION
The introduction of online sites is definitely a boon to customers providing unlimited shopping possibilities, all from the comfort of your home, whenever its convenient for us, from anywhere around the globe. Although Priceline.com is one among the online auction sites, it has more disadvantages than advantages.

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QUESTIONS
How does the Internet illustrate the marketing

concept in action?
Explain how department stores,shopping

centers,discounters and warehouse stores created value for consumers.

How do Internet sellers such as

Priceline.com,NexTag.com and Amazon.com create value for consumers?Contrast this value creation with that of traditional retailers in question 2.
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Contd..
How does the Internet create value for goods and

service producers?
Can a company like Priceline.com sell low-

priced items such as groceries and telephone calls?

How does a firm like Priceline.com exemplify

the new model for connecting with customers as explained in the chapter?
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THANK YOU
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