Peloton Interactive Inc.: A Push to Keep Users Pedalling

Name: Peloton Interactive Inc.: A Push to Keep Users Pedalling (English version)
SKU: W35254

Joshua Foster, Ryan Cheng

Product #:W35254

Supplier:Ivey

Discipline:Economics & Public Policy, Marketing

Setting:United States, 2023

Details:Case (PDF) • 10 pages • 2024-03-21

Your Price:

$9.71

Language:

Format:

Purchase this material with a free Educator Account and enjoy more benefits:

Free Educator Copy
Free Teaching Notes
Build your coursepack
Discounted academic price

The case centres on the pricing and business model challenges facing Peloton Interactive Inc.’s new CEO, Barry McCarthy. With the decline in demand post-pandemic, McCarthy must make pricing and product decisions that balance revenue, profitability, and changing consumer dynamics. The case prompts students to assess McCarthy's options through a behavioural lens, considering the importance of behavioural biases in consumer decision-making and the alignment of the business model and marketing efforts with the target consumer’s decision-making process.

Learning Objectives

This case is designed specifically for use in the introductory or intermediate modules of behavioural economics courses; however, it can also be used for marketing and strategy courses at the undergraduate and graduate levels. After working through the case and assignment questions, students will be able to do the following:

Understand consumer purchasing behaviour and the consumer life cycle from a behavioural lens.
Apply key behavioural theories, including prospect theory, present bias, and projection bias, to consumer behaviour associated with exercise.
Assess target market, pricing, and placement strategies in the presence of behavioural biases.
Align business model and marketing functions with consumer insights using behavioural biases and tactics.

Peloton Interactive Inc.: A Push to Keep Users Pedalling

Subjects:

Industries:

Geography:

Learning Objectives