Originally posted by fscott:
HT and team want to see if they can keep would-be subscribers with lower pricing of $19.95. Does this lower price make a difference? Are they leaving after 2 weeks to go play WB or AW3 for less money? Will they now re-open an account since they can play UNLIMITED time for $19.95?
The logic is easy to understand. You can have it either two ways. A few players paying higher price, or lots of players paying low price. That is their aim. Now please let them do their job.
fscott
The logic is fine and easy to understand. The methodology to determine their goal is flawed and unnecessarily antagonistic.
Goal one. Find a profitable price that players are willing to pay. No problem here. Market research (competitors) and the base numbers they already have for operating expenses give them part of the data they want.
Goal two. Would a lower price bring in new members. Likely but unknown until they poll those leaving the game after the intro period. Solution? Poll outgoing players as a matter of course. Those that respond are likely to give valid data as they have nothing to gain by giving false responses. Questions based on a selection of rates would give an idea. Using separate exit polls with different rates listed would help narrow down a "comfort level" of pricing.
Example: 20 exit polls go out with "suggested prices of $10.00 - $15.00 - $20.00. Another set of 20 go out to different players with prices listed as $12.50 - $17.50 - $28.50. Another set go out asking about prices of $15.00 - $25.00 - $35.00.
If you wanted to give an incentive to get the survey you could offer a $5.00 gift certificate to some online buying service or online bookstore. The certificate to be received after the survey is completed. The incentive is not a "bribe" for a nonpaying customer to become a paying customer, but a thank you for their help. Since it is not tied directly to the service being offered it won't taint the survey nearly as much as offering one third off the price of the service in perpetuity.
The same surveys could be given to the current paying customers. Now think about it. Would anyone really complain if the price went down?
Goal three. Avoid a multilevel pricing situation. Oops, blew that one this time. A multi pricing situation has just been created. Current paying customers who have been loyal to the vendor have just been told their opinion isn't worth anything as they weren't even surveyed. Their loyalty is counted on to overcome the price differential of the two memberships.
As I said, the goal of determining a fair and equitable price is not the issue. The methodology is.
Customers have a reasonable expectation of paying the same fee for the same service as everyone else does. Seeing customers getting preferential treatment is not likely to make the other non preferred customers happy. As a customer, I do not have to like the tactics employed. I do not feel that expressing my displeasure toward a vendor providing a service I am paying for is unwarranted if there is a difference in prices for various customers for the same service.
Mav
