Exercise 2: Benefits-Based Segmentation Data provided by the external consultancy team The external consultancy provided Kelly with a different segmentation basis and different scenarios. Assume that: Variable Cost-$0.50 per unit, irrespective of product version. The fixed cost of having a male and female version is about the same as having a gender-neutral version. The consumer's reservation price for a health&beauty version of the product is the higher of the reservation prices they have for the health version and the beauty version, i.e., reservation price (health&beauty) = Max {Reservation Price (Health), Reservation Price (Beauty)} What is the best price for Kelly to charge if she has: 1. only one health&beauty version of the product 2. two versions of the product: a health-specific version and a beauty-specific version Exhibit 2 Quantifying when to offer separate health and beauty versions versus only a combined health&beauty version Scenario Reservation price for men (number of men) Scenario 5 $5.00 (60) for health, $0.00 (60) for beauty $3.00 (40) for beauty, $1.50 (40) for health To be filled in by students: Reservation price for women (number of women) $5.00 (100) for beauty, $0.00 (100) for health Contribution with 1 Contribution with 2 versions: 1 health and 1 beauty product that claims both health and beauty benefits