2008-01-02 18:23:35 -

- Harvard Business School Publishing (HBSP) today announced the release of the Universal Rental Car Pricing Simulation, the first in a line of new Online Simulations to be introduced over the next year. Created in response to customer requests for web-based games on core business concepts, the simulation is the latest addition to HBSP's extensive catalog of experiential learning materials.

Delivered entirely online, the simulation is designed to be engaging and user-friendly. "Simulations can make the class experience unique, fun, and engaging for the MBA student of today who has an unprecedented affinity for technology," said Heide Abelli, Director of Product Development for HBSP's Higher Education Group.

The Universal Rental Car Pricing Simulation teaches the principles of pricing in a dynamic and realistic management environment. Students play the role of a regional marketing manager responsible for pricing a fleet of rental cars across cities in Florida. It covers core pricing concepts including:

-- The nature and dynamics of consumer response to price (i.e., price elasticities)

-- Pricing for specific customer segments and geographic markets

-- Accounting for competitive response when setting price

-- The role of fixed v. variable costs in pricing decisions

-- The role of pricing in managing product inventory

-- The short term and long term impact of pricing decisions

-- The impact of price on overall marketplace demand

Topics covered in the simulation make it ideal for courses in Marketing, Strategy, Microeconomics, and Operations Management. Designed for use with undergraduates or MBA students, it can be played in class or as homework. A typical run takes students 60-90 minutes, plus time to debrief after play is completed. A Teaching Note detailing how to facilitate the simulation is available for faculty authorized on the HBSP web site.

Developed in partnership with the Monitor Group and Forio Business Simulations, the simulation has been field-tested at over a dozen universities worldwide. "In addition to giving us helpful feedback during development, our field testers confirmed our strong belief that playing a simulation focused on the pricing decision is an ideal way to bring key aspects of this important topical area to life," said Abelli.

Online Simulations are a powerful complement to the Participant-Centered Learning method pioneered at Harvard Business School. Participant-Centered Learning puts students at the heart of the learning process, requiring them to exercise leadership and teamwork in the face of real problems. Simulations extend that experiential learning by allowing students to learn by doing, as they make decisions within real-world contexts.

Forthcoming Online Simulations include:

-- Everest Leadership and Team (January 10, 2008)

-- Benihana Service Management (April 2008)

-- Strategic Innovation (April 2008)

To learn more, visit simulations.hbsp.harvard.edu

Universal Rental Car Pricing Simulation Authors:

-- John T. Gourville, a professor in the Marketing Unit at Harvard Business School, is currently the course head for the Core Marketing course in the first year of the MBA program.

-- John E. Hogan, a Group Leader at Monitor Group, is a professor at the Boston College Carroll School of Management.

-- Thomas T. Nagle, a Group Leader at Monitor Group, founded the Strategic Pricing Group in 1987. Prior to that, he was a professor of marketing and strategy at the University of Chicago and Boston University.

About Harvard Business School Publishing

Pioneered by HBS faculty in the 1920s, the case method brings real-life business dilemmas into the classroom. Today, HBS cases vividly capture the realities of business and enable students to play an active role in learning. HBS Publishing makes these cases widely available to enhance management education worldwide. HBSP also publishes the widely-respected Harvard Business Review, Harvard Business books, and other materials for the higher education, corporate learning, and individual manager markets. HBSP's collections include:

-- More than 7,500 case studies, supplements, exercises, and industry notes

-- Articles from Harvard Business Review and other top management journals

-- Harvard Business books from leading authors

-- Powerful eLearning programs

For more information, visit www.hbsp.harvard.edu/educators

Harvard Business School Publishing
Allison Monro, 617-783-7656
amonro@hbsp.harvard.edu