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School

University of California, Los Angeles *

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Course

101

Subject

Marketing

Date

Feb 20, 2024

Type

png

Pages

1

Uploaded by GeneralOryx4061

Report
10. Suppose that Nike 1s the only running shoes’ producer in California. 'I'he firm sells two types of shoes: carbon-plated running shoes and regular running shoes. Their marketing team estimates that their potential market is composed of 50k professional runners and 50k amateurs runners. Each runner in the potential market will only buy one pair at most. Costs and willingness to pay for each type of shoes are given in the following table: Willingness to pay Running shoes type Costs Pro runners Amateurs runners Carbon 85 200 110 Regular 40 95 70 Assume that, when indifferent, pro runners choose the carbon-plated shoes and amateur runners choose the regular shoes. Suppose that Nike cannot distinguish between pro and amateur runners and that the company is considering whether to offer both types of running shoes or not. Which of the following strategies will give a higher profit to the company:
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