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MIT Sloan Asia Business Conference15.818 Pricing ProjectThomas AnnicqShih-Hung ChenDouglas HwangLilianTse
1st ever MIT Sloan Asia Business ConferencePricing Strategy 1.0:Pricing “from the gut”What do competing regional conferences charge?Pricing a little under thatCapacity constraint hit quicklyOpportunity missed
Pricing Survey GoalsIs exposure to Asia related to willingness to pay?How can we maximize both undergrad and grad attendance?Do MBA’s have a different willingness to pay than grad students?What prices should we charge professionals?
15.818 ApproachMonadic Pricing Survey272 ResponsesTesting various WTP for the 4 different constituentsBack testing based on data from specific themed conferences: SAC, VCC, PES
Survey ParticipantsMean exposure level: 6.2 (out of 10)St. Dev: 2.1
HypothesisStudents are more price elastic than non-students (MBA less than non-MBAs)Past attendees are more price elastic than non-attendeesThose exposed to Asia will be less price elastic than non-exposed
Total Interest, WTP
Asia Exposure, WTP
Asia Exposure, WTP
Attendance, MBA, WTP
ElasticityOpportunities to increase price in all segments, for interested partiesContrary to hypothesis, MBAs are the most price sensitive when considering everyoneDifferences in Asia exposure are minor
MBA Conferences ComparedData pulled from MIT Sloan Africa, Latin America, Asia, VC, PE, Sports and HBS Asia Conferences
ConclusionsWTP does not change with expected exposurePrevious attendanceIndustry conferences have lower elasticities than regional conferencesMBA Conference Pricing is generally TOO low
Survey ArtifactsVery MBA-centric survey participantsPrice anchoring“Gaming”
RecommendationsAsian Business Conference Raise student prices to $50Raise professional prices to $100In effect double revenuesRe-brand conference to a regional “industry” focus
Questions?
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