Taronga Zoo Essay

4131 Words Aug 25th, 2010 17 Pages
University of Technology Sydney
Faculty of Business

Pricing and Revenue Management Assignment
By Gary Anderson (10543546), Robert Baker (10630426),
Angela Chan (11080456), Fred Duarte (10796086), Mary Levy (10803928)

Prepared for Dr Christine Ebling
Due Date: 27th May 2010

CASE REPORT FOR TARONGA ZOO
By Anderson Baker Chan Duarte Levy Associates (ABCDL)

Contents

1. Taronga’s Zoo’s Strategy 1 1.1 Strategic Approach & Price Position 1
2. Current Analysis of Taronga Zoo’s Market 2 2.1 Willingness to pay 2 2.2 Consumer Behaviour and Current Pricing 2
3. Pricing Decision and Future Pricing Recommendations 4 3.1 Pricing for Families 4 3.2 Pricing for Couples 4 3.3 Increasing Repeat Visitation 4
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It also suggests that admission prices are considered high during the pre-purchase phase, with respondents selecting a lower price for each of the admission levels (Appendix11). However Taronga Zoo reports that overall satisfaction with price was high during the purchase/post purchase stage (Appendix 12). Motivational drivers coupled with the potential emotional ramifications of disappointing their family or partner may affect these reference prices resulting in a new adaptation level due to this immediate focal stimuli. Reference prices can be made up of several components: the price most frequently charged; the price which the consumer last paid; the price of the service the consumer usually buys; the average price of similar services; the perceived quality of the service (Coalter 2004, pg 74). This may explain these lower pre-purchase reference price, as Taronga Zoos competitors charge less and primary research indicates this is an infrequent purchase.
Taronga offers full price adult and child admissions plus a separate family rate, which is advertised under discount admissions (Appendix 2). Prospect theory suggests that the family pricing would be more effective if the gains were highlighted by promoting the saving, as all transactions involve some form of risk and can be seen as a

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