Hum Rider is a custom-build car that can master any traffic jam with a flick of a switch. The car widens and elevates so that you can drive right over the cars in front of you! Really, it works.
But, unfortunately, the Hum Rider is not a real car that can be purchased. (Too bad, because if it existed, it would sell)! The Hum Rider is however an ingenious advertisement (and a specially-built vehicle) to promote a new service, Hum by Verizon.
Hum is a device that makes cars smarter and more connected with a suite of features. The device notifications include mechanic hotline, maintenance reminders, boundary and speed alerts, and for an additional fee, includes Wi-Fi hot spot.
Hum is priced at a subscription fee of $10 per month, plus $20 activation fee, plus $29.99 equipment fee. To use: download the app, clip Hum speaker to car visor, plug the Hum reader into a car’s OBD-II port, and it’s ready to go.
The video was a viral hit garnering 35 million views on Facebook in 48 hours. But sadly, it just can’t jump over the cars in front of you on the highway.
Group Activities and Discussion Questions:
- Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
- Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
- Show the Hum Rider video: https://youtu.be/faU7-6u58zM
- View the Web site Hum by Verizon: https://www.hum.com/
- For Hum, divide students into groups and have each group work on any/all of the six steps.
- When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
Source: Ad Week