Porsche Drive (B): Vehicle Subscription Strategy

Supplemental product to accompany product W39684.

This case can be used in an undergraduate marketing major course focusing on pricing or a finance major course focusing on loan calculation. It can also be used in graduate pricing and revenue management courses. If the instructor uses Robert L. Phillips’ Pricing and Revenue Optimization as a textbook, this case can serve as a supplemental case assignment to its second chapter.<br><br>This case can be used to achieve the following learning objectives:<ul><li>Data visualization: Students can visualize depreciation curves for Porsche cars and their competitors. This case will help students form hypotheses before analyzing Porsche Drive’s success.</li><li>Traditional pricing strategies: Students will understand the advantages and disadvantages of cost-based, market-based, and value-based pricing strategies in subscription businesses. </li><li>Capacity-constrained price optimization (optional): Students will learn that a low fleet utilization and a high price for the multi-vehicle subscription program may be ideal. They will use basic optimization models to give pricing suggestions.</li><li>Consumer channel selection: Students will find out that consumers’ subscription adoption is affected by traditional financing and leasing channels and their corresponding market dynamics. Students will also become familiar with a financing calculator and improve financial literacy.</li></ul>