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The external consultancy also wants Kelly to consider some additional scenarios. They think that ne of their assumptions may not hold true. This assumption
The external consultancy also wants Kelly to consider some additional scenarios. They think that ne of their assumptions may not hold true. This assumption states that: The consumer's reservation price for a health&beauty version of the product is the higher of the ese on prices they have for the health version and the beauty version, Le, reservation price (healthsbeauty - max leservation price (health), reservation price (beauty)). Alter all, if the nail brightening cream has a very focused positioning on beauty versus a diffused positioning on health&beauty, consumens who are looking for a beauty benefit may pay more for the beauty-specific version. The same may also hold for comsumen wanting a health benefit and a health version beling offered (versus a healthsbeauty version). On the otne hand, some cosumers may prefer a general product to a specific product. What is the best price for Kelly to charge if she has: 1. only one health&beauty version of the product 2. two verslons of the product: a health-specific verslon and a beauty-specific version Exhibit 3 Quantifying when to offer separate health and beauty versions versus only a combined health&beauty version (people pay more or pay less for specialized versions) To be Alled in by students: Contribution with 2 Retervation price for men (oumber of men) Scenarie Heservation price Contribution with 1 for women (number of women) versions: 1 health and 1 beauty preduct that claims both health and beauty benefits $5.00 (60) for health, 55.00 (100) for beauty. $0.00 (100) for health, $4.00 (100) for health&beauty Scenario 6 50.00 (60) for beauty. $4.00 (60) for health&beauty $3.00 (40) for beauty, $1.50 (40) for health, $4.00 (40) for health&beauty Kelly has now looked at the data and scenarios provided by both the in-house and external consultants. Are there any other scenarios (using the same data) that she should consider?
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