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Question 1: The following overview describes the three phases of a marketing research campaign you are spearheading for your rm. Answer questions in each phase

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Question 1: The following overview describes the three phases of a marketing research campaign you are spearheading for your rm. Answer questions in each phase based on information provided in that phase ONLY. You have been hired to take charge of pricing for a relatively new wireless service enabling consumers to watch a live feed of television content on a mobile phone device. The actual device is sold and managed separately by a partner hi-technology rm. Since the phone device is currently sold at close to what is considered to be a "throw-away" price, you are not tasked with considering the role of device pricing. Igioring the pricing of the device is clearly a very strong assumption to make. But, due to time constraints, your rm has asked you to focus solely on subscription pricing. Thus, your responsibilities pertain only to the pricing of the service subscription contracts. Currently, your rm offers a single subscription plan consisting of content 'om the following television channels: NBC, CBS and ESPN. The product has already been on the market for a few months. But, early revenue numbers have been a bit disappointing , prompting the rm to hire you. Your job consists of determining the appropriate subscription pricing policy for the rm. Phase I Before launch, the rm conducted a number of informal surveys that directly elicited the willingness -to-buy of 1,000 subjects intercepted in shopping malls across the US. Each subject was rst given a demonstration of the phone device itself. In addition to the demonstration , each subject was allowed several minutes to watch the di'erent types of content on the device. Aerwards , each subject was told the current price of the device bundled with a 1-year service subscription (Le. total price for one year). Subjects were then asked whether or not they would buy the device at that price. The specic price was drawn at random, with a 50% chance of being $400 or $250. For the 500 subjects shown $400, 20% said they would buy. For the 500 subjects shown $250, 30% said they would buy. Phase I Tasks .' 1) Based on the survey results, recommend a percentage mark-up for the subscription pricing. Please show your work

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