Questions and Answers of Essentials Of Marketing Analytics

The Atlanta to Dallas FBN flight has 210 seats and the fare is $105. Any overbooked passenger costs $300. The number of no-shows is normal with a mean of 20 and standard deviation of
Determine the Protection Limit that maximizes the expected profit. Again assume that there are always enough leisure travelers to pay the discount rate for the unsold rooms.
Suppose a Marriot offers a $159 discount rate for a midweek stay. Its regular rate is $225. The hotel has 118 rooms. Suppose it is April 1 and the Marriott wants to maximize profit from May 29
What booking limit maximizes expected revenues? Assume there are no no-shows and always enough advanced purchasers to fill the flight.
A flight from New York to Atlanta has 146 seats. Advance tickets purchased cost $74. Last-minute tickets cost $114. Demand for full-fare tickets is normally distributed with a mean of 92 and standard
How can Broadway plays use revenue management?
How can TV networks use revenue management?
Redo the analysis in the first section, "Estimating Demand for the Bates Motel and Segmenting Customers," assuming demand follows a constant elasticity demand curve. Use the Power Curve option on the
Because customers have heterogeneous valuations for a product, if you do not have sales, you never can sell your product to customers with low valu- ations for the product.
Prices of high-tech products often drop over time because when the product first comes out, companies want to charge a high price to customers who value the product highly. After these customers buy
(Requires calculus). Suppose the first computer of a new model produced by Lenovo costs $800 to produce. Suppose previous models follow an 85 percent learning curve and it has produced 4,000
If unit cost drops by 20 percent, when cumulative production doubles, then costs follow an 80 percent learning curve. What value of b corresponds to an 80 percent learning curve?
Show that if the unit cost to produce the xh unit of a product is given by axb then doubling the cumulative cost to produce a unit always drops by the same fraction.
The file Coupons.xlsx gives the value that a set of customers associates with a Lean Cuisine entree. The file also gives the "cost" each person associates with clipping and redeeming a coupon. Assume
Joseph A. Bank often has a deal in which men can buy one suit and get two free. The file Banks.xlsx contains the valuations of 50 representative customers for one, two, or three suits. Suppose it
For the power company example construct a standard quantity discount pricing strategy that leaves the customer with 25 percent of the consumer surplus.
Suppose Verizon has only three cell phone customers. The demand curve for each customer’s monthly demand (in hours) is shown here: Customer Demand curve 1 Q = 60 – 20p 2 Q = 70 – 30p 3 Q = 50
(Requires calculus) Suppose the demand for a computer by a leading corpo- rate client (for p100) is given by 200000/p. Assume the cost of producing a computer is $100.a. If the same price is charged
Show that for the demand curve q = 40-2p the consumer places a value of exactly $256 on the first 16 units.
The file Finalmusicdata.xls (available on the companion website) contains data showing the most 1,000 people were willing to pay for 10 songs. For example, as shown in Figure 6-7, Person 1 is willing
Using the data in Exercise 1, determine the profit maximizing the quantity discount scheme in which all units up to a point sell for a high price, and all remaining units sell for a low price.
The demand curve for a product is q = 4000-40p. It costs $5 to produce each unit.a. If you charge a single price for each unit, how can you maximize profit?b. If you use a two-part tariff, how can
You own a small country club. You have three types of customers who value each round of golf they play during a month as shown in the following table: Round Segment 1 Segment 2 Segment 3 1 $60 $60
Suppose your company sells four products and during a year a customer will buy each product at most once. Your company would like to give an endof-year rebate of 10 percent off to customers who
Describe a situation in which a bank can benefi t from a bundling strategy.
For the data in Table 5-3 verify that the given mixed bundling strategy maximizes the seller’s profi t.
Before publishing a hardcover book, a publisher wants to determine the proper price to charge for the hardcover and paperback versions. The fi le paperback.xlsx contains the valuations of 50
The New York Times wants to price home subscriptions and web access. Of course, people can buy both home subscriptions and web access. Assume there are three market segments whose size and valuations
Microsoft is going to sell a Student version of Office (excluding Access and Outlook) and a full version of Office. Assume there are three market segments whose size and valuations for each version
Kroger is trying to determine which types of Vanilla Wafer cookies to stock. The wholesale cost Kroger is charged for a box of each type of cookie is shown in the following table:The wholesale price
The file songdata.xlsx gives the values several hundred people place on 15 downloadable songs. A subset of the data is shown in Figure 5-10.a. If you charge a single price for all songs, how can you
A German machine company sells industrial machinery and maintenance policies for the machine. There are four market segments. Figure 5-9 shows the size of each market segment and the amount each
When using Evolutionary Solver you need to implement bounds on changing cells, use a Mutation rate of 0.5, and handle other constraints by incorporating penalties in the target cell.
You can use Evolutionary Solver to maximize Revenue (or Profit) obtained from customers.
If you assume that each customer will purchase the product with the largest (non-negative) surplus, then you can set up a spreadsheet that tells you the revenue obtained from your customers for any
Bundling products often allows companies to extract more consumer surplus from customers by incentivizing the customers to purchase more products.
For the demand curve q=100p show that for p = 1, 2, 4, 8, and 16 that a 1 percent increase in price will result in approximately a 2 percent decrease in demand.
(Requires calculus) Show that if the demand for a product is given by the power curve q=ap, then for any pricea, a 1 percent increase in price will decrease demand by 1 percent.
You want to determine the correct price for a new weekly magazine. The variable cost of printing and distributing a copy of the magazine is $0.50. You are thinking of charging from $0.50 through
Use the demand information given in Exercise 7 for this exercise. Each game owner buys an average of 10 video games. You earn $10 profit per video game. What price should you charge for the game
Suppose it costs $250 to produce a video game console. A price between $200 and $400 is under consideration. Estimated demand for the game console is shown in the following table. What price should
A prescription drug is produced in the United States and sold internationally. Each unit of the drug costs $60 to produce. In the German market, you sell the drug for 150 euros per unit. The current
You manage a movie theater that can handle up to 8,000 patrons per week. The current demand, price, and elasticity for ticket sales, popcorn, soda, and candy are given in Figure 4-16. The theater
What price should you charge for a razor and for a blade?
In the razorsandblades.xls file example, suppose the cost to produce a blade is $0.20. If you charge $0.35 for a blade, a customer buys an average of 50 blades from you. Assume the price elasticity
Now assume that, on average, a purchaser of your video game console buys 10 video games, and you earn $10 profit on each video game. What is the correct price for consoles?
What price should you charge for a console?
You need to determine the profit-maximizing price for a video game console. Currently you charge $180 and sell 2 million consoles per year. It costs $150 to produce a console, and the price
Use this information to determine a linear and power demand curve.
Your company charges $60 for a board game it invented and has sold 3,000 copies during the last year. Elasticity for board games is known to equal
Using the Solver Table add-in to quickly price thousands of products!
Examining the effect of product tie-ins on the optimal product price.
Using the Excel Solver to determine the profit maximizing price.
Using the Excel Trend Curve and Goal Seek to obtain back-of-the-envelope estimation of a demand curve.
Compute and interpret the skewness for the three data sets in the file Skewexamples.xlsx..
In the years 1980-2012 median U.S. family income (after inflation) has dropped but mean family income has sharply increased. Can you explain this seeming anomaly?
Fill in the blank: On days in which at least 500 cookies are sold there is a 5 percent chance at least cookies are sold.
Find the median cake sales on days in which at least 500 cookies were sold.
Determine the average profit earned for each day of the week and month combination. Assume the profit earned by La Petit Bakery on each product is as follows: Cakes: $2 Cookie: $0.50 Pie: $1.50
Exercises 9-12 use the data in the Descriptive stats worksheet of the Chapter3bakery.xlsx workbook. Determine the percentage of La Petit Bakery cookie sales for each day of the week and month
For each location and age group (under 25, 25-39, 40-54, 55, and over) determine the fraction of ESPN subscribers for each location that are in each age group.
Exercises 7 and 8 use the data in the Data worksheet of the ESPN.xlsx workbook. Find the average age of all ESPN subscribers who make at least $100,000 a year.
Fill in the blank: There is a in a day. chance that at least 600 cookies will be sold
Fill in the blank: There is a 10 percent chance daily demand for smoothies will exceed
Determine the fraction of days for which smoothie demand is an outlier.
Fill in the blank: By the rule of thumb you would expect on 95 percent of all days daily smoothie demand will be between and
Are daily cookie sales symmetric or skewed?
Exercises 1-6 use the data in the Descriptive stats worksheet of the Chapter3bakery.xlsx workbook. Create a dynamically updating histogram for daily cookie sales.
Writing array formulas to perform complicated statistical calculations on any subset of your data.
Using the powerful "counting and summing functions" (COUNTIF, COUNTIFS, SUMIF, SUMIFS, AVERAGE IF, and AVERAGEIFS) to summarize marketing data.
Using Excel statistical functions such as AVERAGE, STDEV, RANK, PERCENTILE, and PERCENTRANK to summarize marketing data.
Using the Excel Table feature to create dynamic histograms that summarize marketing data and update automatically as new data is added.
Then determine sales during Years 1-20. Suppose 10,000 units need to be sold in a year to break even. Chart your annual sales, and set up a dynamic chart title that shows the year (if any) in which
The marketing product life cycle postulates that sales of a new product will increase for a while and then decrease. Specify the following five inputs: Year 1 sales Years of growth Years of decline
Set up a chart that can be customized to show total monthly sales for any subset of La Petit Bakery's products. Of course, you want the chart to update automatically when new data appears in the
Use the Excel Table feature to set up a chart of daily cake sales that updates automatically when new data is included.
Jack Welch's GE performance evaluation system requires management to classify the top 20 percent of all workers, middle 70 percent of all workers, and bottom 10 percent of all workers. Use Icon sets
The Income worksheet contains annual data on median income in each state for the years 1984-2010. Use Sparklines to summarize this data.
The data in the checkboxes worksheet contains monthly sales during 2010 and 2011. Use check boxes to set up a chart in which the user can choose which series are charted.
The Survey worksheet contains results evaluating a training seminar for sales- people. Use a PivotChart to summarize the evaluation data.
The Pictures and Labels worksheet includes monthly tomato sales on Farmer Smith's farm. Summarize this data with pictures of tomatoes, data labels, and a data table.
The Weather worksheet includes monthly average temperature and rainfall in Bloomington, Indiana. Create a combination chart involving a column and area graph with a secondary axis to chart the
The Weather worksheet includes monthly average temperature and rainfall in Bloomington, Indiana. Create a combination chart involving a column and line graph with a secondary axis to chart the
Using the Table feature and GETPIVOTDATA function to automate creation of end-of-month sales reports
Using a check box to control the data series that show in a graph
Using Custom Icon Sets to summarize trends in sales force performance
Using Sparklines to summarize sales at different stores
Using PivotCharts to summarize a marketing survey Making chart labels dynamic
Using the Table feature to ensure your graphs automatically update when new data is added
Adding labels and data tables to your graphs
Adding a product picture to your column graphs
Using a combination chart and a secondary axis
The fi les EAST.xlsx and WEST.xlsx contain information on product sales (products A–H) that you sell in January, February, and March. You want to use a PivotTable to summarize this sales data. The
The tapedata.xlsx fi le contains data for weeks during 2009–2011 for the unit sales of 3M tape, price charged, whether an ad campaign was run that week (1 = ad campaign), and whether the product
The cranberrydata.xlsx fi le contains data for each quarter in the years 2006–2011 detailing the pounds of cranberries sold by a small grocery store. You also see the store’s price and the price
The Station.xlsx file contains data for each family including the family size (large or small), income (high or low), and whether the family bought a station wagon. Use this file to perform the
The Makeup2007.xlsx file (available for download on the companion website) gives sales data for a small makeup company. Each row lists the salesperson, product sold, location of the sale, units sold,
Which products generate 80 percent of the revenue?
How much revenue does each product generate?
What percentage of sales occurs during each month?

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