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PricingSimulation
Universal Rental Car
for coursEs in:
strAtEgy
by jOhNT.GOurVillE, TOMNaGlE,aNdjOhNhOGaN
microEconomics
opErAtions mAnAgEmEnt
mArkEting
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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.
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adoptinganyofouronline
simulationsissimple:
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+91-022-27578668
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
STUDENT DASHBOARD
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.
analyze
decide
dashboard
overview
analyze
price
history
Prices
decision
history
your
decisions
prepare
market
share
unit
sales
unive
fleet
Dashboard Overview - All Cities - October
Pricing Simulation Universal Rental Car
prepare
Pricing Simulation Universal Rental Car
Market Share
Unit Sales
Set decisions for November
Weekday Price
Weekday
Weekend Price
Tampa
$46
$32
Orlando
$41
$37
Miami
$49
$36
Universal
$44.33
Competitor
$37.15
Advance Simulation
log out
credits
high scores
Developed in partnership with the Monitor Group and Forio Business Simulations.
Students learn fundamentals of a
segment-based pricing approach.
Weekend
Universal
$36.43
Competitor
$31.57
FULL REPORT >
Universal Fleet Size
Students see how to optimize inventory
through pricing to manage both
stockouts and excess inventory.
38,344 vehicles
log out
credits
Weekday: 94%
Weekend: 71%
FULL REPORT >
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.
Unive
Comp
FULL REPORT >
Universal Capacity Utilization
FULL REPORT >
Students must account for the likely
competitive and market responses
to their pricing decisions.
Universal: 44%
Competitor: 56%
Monthly Ne
$
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.
A breakeven pricing tool allows
students to learn fundamentals of
marginal math calculations.
decide
capacity
utilization
ersal
size
Pricing Simulation Universal Rental Car
monthly
net income
market
research
breakeven
calculator
prepare
analyze
decide
Breakeven Calculator - All Cities
Weekday
$36 $38
$40
$42
$44
$46
$48
$50
Weekend
$52
Breakeven change in volume
0.00%
Percent change in price
OCT
0.00%
FLORIDA
Breakeven change in revenue
0.00%
NOV

DEC

JAN
ersal: 829,157
petitor: 1,052,600
FULL REPORT >
et Income
Tampa
Orlando
Miami
All Cities

FEB
Breakeven
change in
volume
0.00%
=
Breakeven
change in
revenue
0.00%
=
log out
creditshigh scores
(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%)
Developed in partnership with the Monitor Group and Forio Business Simulations.
MAR
APR
MAY
JUN
JUL
$1,941,519
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
FULL REPORT >
Developed in partnership with the Monitor Group and Forio Business Simulations.
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.
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.
Simplebutpowerfuladministrationtools
allowprofessorstosetlearningobjectives
forthesimulation.
ADministrAtion scrEEn
Pricing Simulation Universal Rental Car
Simulation is Open to Students
Professors can adjust price
sensitivity curve slopes
to customize learning
objectives.
Leisure Demand
Avg Price
Scenario A: Introductory Pricing Simulation
Scenario B: Intermediate Pricing Simulation
Scenario C: Advanced Pricing Simulation
Normal
Curve Shape
Normal
100%
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
Demand Growth
25%
0%
$0
$20
$40
$60
$80
$100
Reset
Orlando
Miami
No Growth
Growing Demand
Shrinking Demand
Preconfigured
Introductory, Intermediate,
and Advanced options
allow customization based
on MBA, Exec Ed,
or undergraduate use.
Business Demand
Avg Price
Normal
Curve Shape
Normal
100%
75%
Include Demand Seasonality
Competitor Price Strategy
50%
Manage Capacity with Price
Capacity Constrain Orders
Allow Capacity Changes Every Three Months
Set Scenario
log out
credit
25%
0%
$0
$20
high scores
$40
$60
$80
$100
Reset
Cancel
Developed in partnership with the Monitor Group and Forio Business Simulations.
Using these tools professors can:
Using these tools professors can:
n Set competitor price response to 1 to 4 strategies,
manage capacity with price, tit-for-tat pricing,
predatory pricing, or gradually increasing prices.
n Simplify the simulation by focusing on only
one segment.
n Constrain and allow students to reallocate capacity
across regions.
n Set the overall complexity level of the simulation
by focusing on one to three regions.
n Set the simulation to be one of pricing in an
expanding, constant, or shrinking growth
environment, based on course needs.
n Heighten complexity by adding demand seasonality
into factors for students to consider.
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Telephone - +91 22 27810772 / 27810773 Fax - +91 22 27810778
E-mail - info@bharatbook.com Website : www.bharatbook.com