Grad-U-Date
Practice this intermediate pricing case interview question in the Online Dating sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
This case tests pricing strategy and financial analysis through multiple monetization models. Candidates must balance quantitative profit calculations with qualitative market trend analysis, ultimately recognizing that declining user willingness to pay subscription fees (shown in Exhibit 3) makes the premium account model more defensible than pure monthly fees despite lower absolute profit.
Our client is an online dating startup named Grad-U-Date, which specializes in matching graduate students with other graduate students. Grad-U-Date has finished building their app and are now looking for your assistance in deciding on a monetization strategy.
What is Grad-U-Date’s best method of monetization? How profitable will the company be?
Clarifying Information
- Gender ratio of users will be 50/50
- MBA, law and medical students are considered professional students
- The app has already been built, and is considered a sunk cost
- Grad-U-Date will only operate within the United States
- There are 4 major competitors and hundreds of small competitors
- There has been a significant increase in the number of free dating apps starting in late 2012
- There are currently no other online dating services that focus only on graduate students
- Only one revenue model can be used