Question
You operate a Caribbeandestination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay.It is expected that
You operate a Caribbeandestination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay.It is expected that in 2021 there will be some return to more normal travel.You will re-launch your advertising for 2021 announcing that customers will be able to do both for one price.Your marginal cost per customer across both tours is $4800.
Customer Preferences
Customer1
$7,000 (Cruise)
$3,000 (Casino)
Customer2
$2,000 (Cruise)
$6,000 (Casino)
Given the preferences, would bundling improve profits over the high-price strategy?Support your conclusion by showing if (by how much) profits differ under each strategy, bundle v high price.
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Organizational Behavior And Management
Authors: John Ivancevich, Michael Matteson
6th Edition
0072436387, 978-0072436389
