5.Refer to the above table of consumer valuations for two versions of a software product. If the manufacturer of the software product hopes to exercise second degree price discrimination, what should be the incentive compatible prices for the Limited and Pro versions of the software? Is second degree price discrimination profit maximizing?
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- According to the previous discussion, what factors influence the price elasticity of demand for cigarettes? What other factors not mentioned in the article might influence the price elasticity of demand for cigarettes?Why do many Carmex product prices end in 9?What type of pricing is this called? What shouldhappen to demand when this approach is used?Explain the type of pricing strategy that you as the manager of a company would implementfor Good X and Good Y with the following price elasticity of demand co efficients. Usediagrams to motivate your answer.a). Good X: 2.3 b). Good Y: 0.6
- What is the differencw between the demands for hotels and pricing decisions for persons who gets a discount for booking early and staying longer than persons who book late and stay shorter?“A direct inducement that offers an extra value or incentive for the product to thesales force, distributors, or the ultimate consumer with the primary objective of creatingan immediate sale. As an intellectual and dynamic marketer of Singer BangladeshLimited, explain with appropriate examples, what promotional tools you will throw topromote your Television in the rural areas of Bangladesh and how?Assuming you are the managing director of a firm that produces three goods: A, Band C. The price elasticity of demand for A is 1.2, for B it is 1.00 and for C it is 0.75.It is known that he firm is experiencing serious cash flow problems and you have toincrease total revenue as soon as possible. If you were in a position to set the pricesfor these goods, what would be your pricing strategy for each product
- 4. You have been hired as a consultant to estimate the demand for various brands ofcoffee in the market. You are provided with annual price data for two years by U.S.state and the quantities sold. You want to estimate a demand function for coffeeusing this data. What problems do you think you will encounter if you estimatedthe demand equation by OLS?Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demandFor Washburn, what are examples of (a) shiftingthe demand curve to the right to get a higher pricefor a guitar line (movement of the demand curve)and (b) pricing decisions involving moving along ademand curve?
- Explain the methods used toallocate the integratedmarketing communications(IMC) budget.Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned. however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(I) the concept of elasticity of demand, (2) why raisingprices without undetstanding the elasticity would bea bad move. (3) your recommendations for measurement. and (4) the potential impact on profits for elasticand inelastic demandAt many municipal golf courses, local residents pay a lower fee to play than other golfers do. One necessary condition for the golf course to be able to successfully price discriminate according to residency is that A. they can check the identification cards of golfers to determine residency. endroite tod B. local resident golfers and other golfers have the same price elasticity of demand to play at the to cad aluen air.com 0. A ...8 851 0 municipal course. C. there are many golf courses nearby from which golfers can choose. D. they require all golfers to rent a cart.