Question
GreatGorge Amusement Park is a 40-acre fun park full of rides, shows, and shops. Great George' marketing department segments its customer base into two parts:
GreatGorge Amusement Park is a 40-acre fun park full of rides, shows, and shops. Great George' marketing department segments its customer base into two parts: local patrons and tourists. Great Gorge assumes local patrons are more price sensitive than out-of-town tourists. Yearly demand and marginal revenue relations for overnight lodging services, Q, are as follows:
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| Locals |
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| PL | = $42- $0.0008QL |
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| MRL | = D TRL/DQL = $40 - $0.0016QL |
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| Tourists |
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| PT | = $50 - $0.0005QT |
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| MRT | = DTRT/DQT = $50 - $0.001QT |
# If you are not able to segment the market and instead charge one uniform price, to all consumers, what price should you charge and what are your profits? Does market segmentation increase your profits?
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Leading The Digital Workforce Internal Audit And IT Audit
Authors: Jeffrey W. Brown
1st Edition
1032323736, 978-1032323732
