The topic is Pricing. In past week, what did you see the pricing in your life?
Giving a daily life example of the term of " Versioning", Versioning tradeoff", "Price bundling" and "Prospect Theory"
Write up 1-2 pages
The topic is Pricing. In past week, what did you see the pricing in your life?
Giving a daily life example of the term of " Versioning", Versioning tradeoff", "Price bundling" and "Prospect Theory"
Write up 1-2 pages
Related textbook solutions
Related questions
1. Low-end products are usually catered to the bottom of the _____________ market.
| a. | Polygon | |
| b. | Population | |
| c. | Prosperity-model | |
| d. | Pyramid |
2. Which of the following is an example of a product/service where the Midas version is technically and feature-wise not that different from its corresponding Hermes or Atlas versions?
| a. | Recordable CD and DVD disks | |
| b. | Music systems | |
| c. | Automobiles | |
| d. | Laptops |
3. The key strategy for competing in markets characterized by monopolistic competition is to initially offer products that are identical to the majority of existing products.
True
False
4. Which of the following is a popular discrimination strategy used by companies?
| a. | Designing a cool logo | |
| b. | Using various bundling packages as a versioning tool | |
| c. | Having a store credit card | |
| d. | Outsourcing |
5. Versioning means offering different versions of a product at the same price.
True
False
6. A pull production system is one that is driven by actual orders from customers, while a push system is where orders are forecasted.
True
False
Scenario Bundling.1 :
Konon Company produces both digital cameras and photo printers. The marginal cost for a digital camera is 120 and the marginal cost for a photo printer is 80. There are four types of customers for Konon's digital camera and photo printers and their reservation prices are given in the table below.
|
Reservation |
Camera |
Printer |
|
A |
200 |
100 |
|
B |
150 |
150 |
|
C |
210 |
20 |
|
D |
50 |
180 |
The possible pricing strategies are listed in the table below.
|
Prices |
Camera |
Printer |
Bundle |
|
Separated Prices |
150 |
150 |
-- |
|
Pure Bundling |
-- |
-- |
280 |
|
Mixed Bundling |
200 |
150 |
300 |
You can assume each consumer only needs to buy 1 camera and 1 printer and they will purchase a product as long as the consumer surplus from purchasing the product is non-negative.
Refer to Scenario Bundling.1. Assuming there is only one customer of each type, what is the total producer surplus from pricing separately for Konon? We assume that if a consumer's willingness to pay equals the price, the consumer will purchase the product.
A. 150$
b. 350$
c. 120$
d. 230$
