Question
Maytas Pharmaceutical Company has recently developed a new, fast acting cold/flu medicine, which includes two variants: one is for use at night and another for
| Maytas Pharmaceutical Company has recently developed a new, fast acting cold/flu medicine, which includes two variants: one is for use at night and another for daytime use. The firms target market consisted of 1000 consumers |
| belonging to one of four segments, A, B, C, and D. The segment sizes and each segments willingness to pay for a box of cold/flu medicine appear in the table below. |
| Willingness To Pay | ||
| Day Medicine | Night Medicine | |
| Segment A (25%) | $1.00 | $9.00 |
| Segment B (25%) | $4.00 | $8.00 |
| Segment C (25%) | $8.00 | $4.50 |
| Segment D (25%) | $9.00 | $1.00 |
The variable cost of manufacturing a box of day medicine is $2.00, night medicine is $3.00, and $5.00 for the bundle.
Evaluate the three various pricing alternatives (pure bundle, mixed bundle) and recommend a corresponding price discrimination strategy for Maytas.
Please note that I need to know how to solve for Pure bundle and Mixed Bundle
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
