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In terms of strategic planning, the appropriate product mix for Priceline's name-your-own-price business model is related to leisure travel and similar needs, including lodging, rental cars, and amusement parks. There should be one theme (and link) for the site. The other products, such as home financing, purchasing a new car, and long-distance services should be separate product categories with their own theme and link. The reason for this recommendation is that these markets are heavily saturated, and Priceline will find it difficult to become a market leader. Service should be focused on what the company does well, and that is empowering customers in their purchase of leisure travel services. Additionally, the site should have a section solely dedicated to customer service, particularly a FAQ (frequently asked questions) section. This may reinforce consumer confidence before using Priceline's service, increasing consumer confidence. Finally, Priceline.com should focus on the teenage demographic. This segment of consumers seems to be overlooked frequently when it comes to services marketing. A name-your-own-price Web site for concert tickets, or CDs, can possibly be the solution for lost revenues as airlines start to discount their own tickets.
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