Question
Status Quo Scenario: Brand X offers a free online calculator with digital display ads and Brand C offers a subscription-based payroll calculator with unlimited automated
Status Quo Scenario: Brand X offers a free online calculator with digital display ads and Brand C offers a subscription-based payroll calculator with unlimited automated calculations for a high price of $79.99.
Scenario I: Brand X retains its free service and introduces a subscription-based service providing up to 300 automated calculations to take advantage of possible price discrimination through versioning.
Scenario II: Brand X retains its free service and introduces two additional subscription-based services: one providing up to 300 automated calculations and the other providing an ad free environment for manual calculations targeted at ad sensitive customers.
Under Scenario I, if Brand X sets the price of the paid version at $24.99/annum (i.e. profile #5), which of the following statements is true based on your demand-based pricing analysis? [select all that apply]
Group of answer choices
A. Brand X's revenue increases by more than 50% compared to status quo.
B. Brand X dominates the market in terms of both total market share and revenues compared to status quo.
C. Brand X's revenue decreases compared to status quo scenario.
D. None of the above
plz help asap
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