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Peloton Interactive Inc.: A Push to Keep Users Pedalling
The case centres on the pricing and business model challenges facing Peloton Interactive Inc.'s new CEO, Barry McCarthy. With the decline in demand post-pandemic, McCarthy must make pricing and product decisions that balance revenue, profitability, and changing consumer dynamics. The case prompts students to assess McCarthy's options through a behavioural lens, considering the importance of behavioural biases in consumer decision-making and the alignment of the business model and marketing efforts with the target consumer's decision-making process.