Question
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
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 in a customer'snameand$50foreach additional booking.
"We Book Your Honeymoon Tour"
Cruise. Casino
Customer1
$7,000. $3,000
Customer2
$2,000. $6,000
Given the preferences, would bundling improve profits over the high-cost strategy?Support your conclusion by showing if (by how much) profits differ under each strategy.
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
9th Edition
978-0132146654, 0132146657, 9780273754091, 978-0273754206
