One of the most fascinating parts of marketing is pricing. At first glance, a price tag may look simple. But behind that number is a complex mix of strategy, market forces, competition, and consumer psychology.
Consider the streaming industry. Disney+ recently introduced a promotional bundle with Hulu for just $4.99 per month for the first three months. That’s far below the standard subscription price. Why offer such a steep discount? This is a classic introductory pricing strategy designed to attract new or returning customers. Once consumers enter the platform ecosystem and begin watching shows, the hope is that they’ll stay after the promotional period ends. Notice, however, that loyal subscribers don’t receive the discount. That decision highlights a key marketing tension: balancing customer acquisition with customer retention.
Now compare that pricing strategy with gasoline. Unlike streaming services, gas prices change frequently because they are heavily influenced by supply and demand. When global oil supply becomes constrained, prices rise quickly. Crude oil prices play a major role. Economists estimate that a $10 increase in oil can raise gasoline prices by 10 to 15 cents per gallon. Because fuel is used for transportation, rising energy costs can also increase prices for airline tickets, shipping, and everyday goods.
These two examples illustrate an important marketing principle. Marketers do not control all pricing decisions. Companies can adjust promotional offers and subscription tiers, but external forces like supply shortages or seasonal demand can create volatility that businesses and consumers must navigate.
Designing pricing strategies that create value for customers while staying competitive in constantly shifting markets makes pricing dynamic and challenging for marketers.
Discussion Questions and Activities
- Why might companies offer their best discounts to new customers instead of loyal ones?
- How does supply and demand influence gasoline pricing compared with subscription pricing?
- What risks do companies face when they frequently change prices?
- How can marketers communicate value when prices increase?
- Streaming Price Comparison. Have students compare subscription pricing across major streaming platforms such as Netflix, Disney+, and Paramount+. Students should identify pricing tiers, ad-supported options, and bundle deals. Discuss which strategies seem designed to attract new customers versus retain existing ones.
- Track Gas Price Volatility. Students use the gas price tracker at https://www.gasbuddy.com to examine current gasoline prices in different U.S. cities. Ask them to identify patterns, compare regional differences, and discuss what factors may influence price changes.
- Design a Pricing Strategy. In small groups, students create a pricing plan for a hypothetical new streaming service. They must determine introductory price, regular price, bundle options, and promotional discounts. Groups present their strategy and explain how they balance value, competition, and profitability.
Sources:
Torry, Harriet (3 Mar 2026), Iran Conflict Is Starting to Boost Gasoline Prices, WSJ; Cunningham, Mary (5 Mar 2026) Gas prices are up 26 cents since last week. Here’s how much Americans around the U.S. are paying, CBS News; Boardwine, Andrew (8 Mar 2026), Disney+ Slashes Streaming Prices – But Loyal Subscribers Won’t See the Savings, Disneydining.com.
