Question
Consumer Type: PowerPoint Excel Word ENGINEER $60 $175 $75 CUSTOMER $125 $80 $135 EXECUTIVES $75 $100 $140 The above table contains the maximum prices different
Consumer Type: PowerPoint Excel Word
ENGINEER $60 $175 $75
CUSTOMER $125 $80 $135
EXECUTIVES $75 $100 $140
The above table contains the maximum prices different types of consumers are willing to pay for three software titles: PowerPoint, Excel and Word.Suppose there are 100 consumers of each type.
a. Which of the following three strategies has the chance of generating the highest revenue for Microsoft?
Support your answers with revenue estimates for each strategy.
Strategy A.Charge a single price of $315 for the bundle of PowerPoint, Excel and Word
Strategy B.Charge $60 for PowerPoint, $80 for Excel and $75 for Word
Strategy C.Charge$125 for PowerPoint, $175 for Excel and $140 for Word
The best strategy among A, B, and C is...
Can you suggest a strategy that would produce higher revenue that any of the above three strategies? Support your answer with numbers.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started