Peloton Interactive Inc: A Push to Keep Users Pedalling

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Case

Reference no. W35254

Subject category: Economics, Politics and Business Environment

Authors: Joshua Foster (Ivey Business School, Western University); Ryan Cheng (Ivey Publishing, Western University)

Published by: Ivey Publishing

Originally published in: 2024

Version: 2024-03-21

Length: 10 pages

Data source: Published sources

Topics: Pricing; Prospect theory; Present bias; Economics & public policy; Marketing

Share a link: https://casecent.re/p/197894

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Abstract

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.