ECommerce

E-Commerce – Priceline.Com Essay, Research Paper

Priceline.com is an Internet company that has pioneered a unique type of e-commerce known as .demand collection system. that enables consumers to use the Internet to save money on a wide range of products and services while enabling sellers to generate incremental revenue. Using a simple and compelling consumer proposition of .name your price,. the consumer is in control of the product they wish to purchase. In the form of individual customer offers guaranteed by a credit card for a particular product or service at a price set by the customer and communicate that demand directly to the participating sellers or to their private databases. The company works by allowing the consumers to agree to hold their offers open for a specified period of time to enable priceline.com to fulfill their offers from inventory provided by participating sellers. Once fulfilled, offers generally cannot be canceled. By requiring consumers to be flexible with respect to brands, sellers and/or product features, the company enables sellers to generate incremental revenue without disrupting their existing distribution channels or retail pricing structures.

The company is grounded on the assumption of .rational self-interest.. In other words, since individuals make rational decisions to achieve the greatest satisfaction or the maximum fulfillment of their goals, Priceline.com has now revolutionized the market industry. By their .name and lock your price. strategy, more and more consumers have been able to maximize their satisfaction on differentiated products. The consumers want to spend their incomes to get the greatest benefit from the goods and services they can afford. Priceline.com helps them to achieve their goals. Since the inception of this internet-based company, millions of consumers were able to afford more with less expenditure on their goods. In addition, rational behavior varies among every individual because individual preferences, circumstances, and available information differ. Priceline.com offers various or .differentiated goods and services. in a broad range of products to purchase from.

.E-Commerce Pioneer Priceline.com Sells 20,000 Leisure Airline Tickets In Six Weeks.. As ticket sales accelerated, priceline.com has become one of the nation.s top 10 most-visited commerce Web sites. In it.s first six weeks of operation, priceline.com sold more than 10,000 tickets. Sales have been monumental with a recorded 1,000-plus-ticket sale in a single day. Sales with an average of one ticket sold every 70 seconds. With its leisure airline ticket service, priceline.com collects consumer demand and helps airlines fill thousands of empty seats every week on their domestic and international flights. Consumers simply tell priceline.com the location, the date they want to travel, the price they.re ready to pay and the major credit card they.ll use to guarantee their request. Consumers then receive an answer from priceline.com in one hour for domestic travel, or 24 hours for international travel. The .name-your-price. buying service that launched in April, sold a record 20,000 tickets online in the last six weeks.

In another article titled, .After First 45 Days, Priceline.com.s New Car Sales Pass $2 Million Mark In New York Market Test,. Priceline.com launched a new car buying service in the New York metro area in July of 1998. The service enables buyers to name the exact car or truck they want, the price they want to pay and the counties they are willing to travel to in order to take delivery of their new car. However, all customers must either have their own financing or pay cash for their new cars. The financing plan is only a limit in the market test; priceline.com now has a financing option that enables consumers to name their own monthly payment plan. The patented e-commerce system has attracted thousands of car buyers and has sold more than $2 million worth of new cars just 45 days after launching in its first test market.

Lastly, there is an article titled, .Name Your Own Price For Gasoline On The Internet, then Get Your Price At A Local Gas Station.. Since May 20th, Priceline Webhouse Club, a licensed affiliate of priceline.com, launched a new service that makes it possible for drivers to simply ignore the price at the pump. Instead, they can go to priceline.com on the Internet and name their own price for up to 50 gallons of gas a month. After locking in their price in 60 seconds or less, drivers can get their gas at local major-brand gas stations selected by Priceline Webhouse Club. Drivers can expect to save 10 to 20 cents a gallon, possibly even more.

Both buyers and sellers have benefited from this new concept of naming your own price for business transactions. The members of Priceline.com are submitting testimonials of how much they.re saving on airfares for leisure, business, and vacation travels. Sellers can move excess inventory at will without competing with their own retail prices or disrupting their established distribution channels. Buyers on the other hand, get the thrill of naming their own price for quality products and services. In addition, priceline.com has joined alliance with other internet-based companies as well to demonstrate new ways in which the Internet can deliver even greater value to consumers.

I believe Priceline.com is a unique new form of commerce that.s a win/