Question
Question 9 You help couples book their perfect honeymoon.You currently offer plans for a cruise and for a casino stay. Your sales manager is getting
Question 9
You help couples book their perfect honeymoon.You currently offer plans for a cruise and for a casino stay.
Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits.
The table below shows the customer preferences.Your costs are$100for the first booking and$50for each additional booking.
"We Book Your Honeymoon Tour"
Cruise Casino
Customer1 $7000 $3000
Customer2 $2000 $6000
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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