Question
Follow up question ( note that the dollar amounts have not changed from the previous scenario. ) You operateaCaribbeandestinationresort. You currently offer plans for a
Follow up question(note that the dollar amounts have not changed from the previous scenario.)
You operateaCaribbeandestinationresort. You currently offer plans for a cruise departing from theresort and plans for a casino stay.It is expected that in 2021 there will be some return to more normal travel.You will re-launch your advertising for 2021 announcing that customers will be able to do both for one price.Your marginal cost per customer across both tours is $4800.
Customer Preferences
Cruise
Casino
Customer1
$7,000 (Cruise)
$3,000 (Casino)
Customer2
$2,000 (Cruise)
$6,000 (Casino)
You know that about 21% of your customers decline cruises because of seasickness.At least 12% decline the casino trip saying they don't believe in gambling.As a rough approximation, you estimate that approximately 33% of your customers will never bundle.Given the preferences distribution, will mixed bundling increase profits?You must show the calculations that support your conclusion.
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Quantitative Methods For Business
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
11th Edition
978-0324651812, 324651813, 978-0324651751
