12"CASESManaging Ashland MultiComm ServicesTABLE AMS12.1Number of Subscribers Who Continue Subscriptionsafter Trial Period with Four Discount PlansPHASE 1Reviewing the results of its research, the marketing departmentteam concluded that a segment of Ashland households might beinterested in a discounted trial subscription to the AMS 3-For-AllCONTINUEDISCOUNT PLANSSUBSCRIPTIONSservice. The team decided to test various discounts before deter-AFTER TRIALNoModerate Substantial Restaurantmining the type of discount to offer during the trial period. Itdecided to conduct an experiment using three types of discountsplus a plan that offered no discount during the trial period:PERIODDiscount Discount DiscountCardTotalYes24303851143No767062492571. No discount for the 3-For-All service. Subscribers would pay$99.99 per month for the 3-For-All service during the trialperiod.Total1001001001004001. Analyze the results of the experiment. Write a report to theteam that includes your recommendation for which discountplan to use. Be prepared to discuss the limitations andassumptions of the experiment.2. Moderate discount for the 3-For-All service. Subscriberswould pay $79.99 per month for the 3-For-All service duringthe trial period.3. Substantial discount for the 3-For-All service. Subscriberswould pay $59.99 per month for the 3-For-All service duringthe trial period.PHASE 2The marketing department team discussed the results of thesurvey presented in Chapter 8, on pages 302–303. The teamrealized that the evaluation of individual questions was provid-ing only limited information. In order to further understand themarket for the 3-For-All service, the data were organized in thefollowing contingency tables:4. Discount restaurant card. Subscribers would be given a spe-cial card providing a discount of 15% at selected restaurantsin Ashland during the trial period.Each participant in the experiment was randomly assignedto a discount plan. A random sample of 100 subscribers to eachplan during the trial period was tracked to determine how manywould continue to subscribe to the 3-For-All service after theHAS AMSINTERNET SERVICEtrial period. Table AMS 12.1 summarizes the results.HAS AMSSMARTPHONEYesNoTotalYes552883No207128335Total262156418

Answered: Image /qna-images/answer/e2fc39df-a857-4e49-8050-e9f7d2b22de8.jpg

Managing Ashland MultiComm Services PHASE 1 TABLE AMS12.1 Number of Subscribers Who Continue Subscriptions after Trial Period with Four Discount Plans Reviewing the results of its research, the marketing department team concluded that a segment of Ashland households might be CONTINUE interested in a discounted trial subscription to the AMS 3-For-All SUBSCRIPTIONS service. The team decided to test various discounts before deter- AFTER TRIAL mining the type of discount to offer during the trial period. It PERIOD decided to conduct an experiment using three types of discounts plus a plan that offered no discount during the trial period: DISCOUNT PLANS No Moderate Substantial Restaurant Discount Discount Discount Card Total Yes 24 30 38 51 143 No 76 70 62 49 257 1. No discount for the 3-For-All service. Subscribers would pay Total $99.99 per month for the 3-For-All service during the trial period. 100 100 100 100 400 2. Moderate discount for the 3-For-All service. Subscribers would pay $79.99 per month for the 3-For-All service during 1. Analyze the results of the experiment. Write a report to the team that includes your recommendation for which discount plan to use Be prenared to discuss the limitations and

Managing Ashland MultiComm Services PHASE 1 TABLE AMS12.1 Number of Subscribers Who Continue Subscriptions after Trial Period with Four Discount Plans Reviewing the results of its research, the marketing department team concluded that a segment of Ashland households might be CONTINUE interested in a discounted trial subscription to the AMS 3-For-All SUBSCRIPTIONS service. The team decided to test various discounts before deter- AFTER TRIAL mining the type of discount to offer during the trial period. It PERIOD decided to conduct an experiment using three types of discounts plus a plan that offered no discount during the trial period: DISCOUNT PLANS No Moderate Substantial Restaurant Discount Discount Discount Card Total Yes 24 30 38 51 143 No 76 70 62 49 257 1. No discount for the 3-For-All service. Subscribers would pay Total $99.99 per month for the 3-For-All service during the trial period. 100 100 100 100 400 2. Moderate discount for the 3-For-All service. Subscribers would pay $79.99 per month for the 3-For-All service during 1. Analyze the results of the experiment. Write a report to the team that includes your recommendation for which discount plan to use Be prenared to discuss the limitations and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose you’re relatively new in business and want to launch your product in the market.You have a great deal of flexibility in how you set your prices, you may want to considerpricing for optimum market penetration. This means that you initially sell your product ata low introductory price P0 (say) to attract new customers, then raise prices once you’vesecured your share in the market. Determining the most appropriate pricing model for yourbusiness is tricky and takes considerable research.If it is known that change in price P depends upon the demand D and Supply S of yourproduct, where both D and S are linearly related to price P.(a) Write the differential equation the describes the change in price.(b) Describe the pattern of change of price for different phases.(c) For what values of parameter, you have equilibrium price (Hint: Recall equilibriumsolution of differential equations)
You are hired as a consultant at a revenue management firm and one of ourrecent clients wished to determine the optimum price for their consumer electronics product.The cost of the product is $100 and before retaining us, they had been selling the product at$200 because it felt like a nice round number. The current sales volume is 1000 units peryear. We examined the market preferences and buying behavior, and concluded that thiscompany’s marketplace has a price elasticity of 1 (i.e. Assume that an x% change in pricewill result in an x% change in sales volume for any x). What is the optimal price thatmaximizes total profit for this company? What are the sales volume, total revenue and totalprofit at the optimal price?
Management of McPablo’s Food Shops has completed a study of weekly demand for its “old-fashioned” tacos in 53 regional markets. The study revealed that Q = 400 -1,200P + .8A + 55Pop + 800P° where Q is the number of tacos sold per store per week, A is the level of local advertising expenditure (in pesos), Pop denotes the local population (in thousands), and P0 is the average taco price of local competitors. For the typical McPablo’s outlet: P = Php1.50, A = Php1,000, Pop = 40, and P0 = Php1.00. Estimate the weekly sales for the typical McPablo’s outlet. What is the current price elasticity for tacos? What is the advertising elasticity? Should McPablo’s raise its taco prices? Why or why not?
What is the approximate value of Annie’s brand/store compared to Sam’s for an otherwise equal apple tree? What is the estimate for market share for Annie if she sells Gal Apple Trees at $15.95 vs. Sam selling golden Delicious trees at $24.95.?
A market analysis employed by the “Sad Student Company” reveals that the number oflots of the game named “Handsome Killer: Revenge of the Teacher” ordered by thewholesalers when the game is offered at a price of dollars per lot is given by the formula:p=1500-2.5qa) Find the company’s total, marginal and average revenues b) Find the price and quantity maximizing the total revenue by first expressing therevenue as a function of price rather than of quantity
India’s Tata Motors was moving forward with a strategy focused on small inexpensive cars, even though this was a highly competitive market segment, dominated by Japanese auto makers. The company’s aim was to design a small car that would be significantly cheaper to make and buy than any other model, and thus to satisfy India’s mass market demand for low – cost transportation. The result was the Nano, with a sales price of 100, 000 rupees (US$2,500), which was half the price of its closest competitor in India. Tata Motors achieved this by designing everything from scratch, deleting features that were taken for granted by other auto makers (for example air conditioning, power brakes, radios), using lightweight steel and an aluminium engine, and building in fuel efficiency. Being the part of such a large TATA group is itself a competitive advantage. This affiliation provides the company with the needed knowledge and technology resources for taking their business to various parts of the…
Youngstown-Warren Regional Airport (YNG) has had a difficult time securing passenger service from a commercial airline. a.) A few years ago, the Port Authority offered an incentive to United with guaranteed revenue equal to approximately $1.5 million, but United declined saying it was not sufficient. Suppose United anticipated that it would cost $1 million to offer flights from Youngstown, so with a guaranteed revenue of $1.5 million, their anticipated profit would equal $500,000. Given that they still chose to decline offering service from YNG, what do you know must be true? Put this in terms of implicit costs and economic profit. b.) In 2019, YNG’s only commercial carrier, Allegiant Air stopped offering service from YNG, despite the fact that it was known to be profitable. Allegiant Air’s service from YNG was known to be profitable. Why would Allegiant Air pull service from YNG even if it had been their service from YNG had been generating a profit? Note, Allegiant started…
Please no written by hand solutions Question 19 Which of the following figures is most likely to represent the cross-price elestioly of dernand of FiereOne internet services to Starlink intemet services. a) -3 b) 0 c) 2.5 d)⋅0.55
Agnes, a General Manager in XXX Company, estimated a multiplicative demand function of the form: using a cross-section data collected in the company sales on 30th June, 2019. The estimation results are as follows: (SEE IMAGE) Write down the estimated demand equation Interpret the coefficients and R2 value Describe any three managerial decisions that can be applied by the manager from the estimated demand function
Suppose the own price elasticity of market demand for retail gasoline is -0.9, the Rothschild index is 0.6, and atypical gasoline retailer enjoys sales of $1, 200, 000annually. What is the price elasticity of demand for arepresentative gasoline retailer's product? Instruction:Enter your response rounded to two decimal places. Ifentering a negative number, be sure to use thenegative (-) sign.
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (wholesale) market elasticity of demand for Scotch liquor is –1.3 and that it costs $16.20 to produce and distribute each liter of Scotch. Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium Scotch liquor. In light of your estimates, are you surprised that the EU might raise concerns about potential anticompetitive effects of the proposed merger? Explain carefully.
The soft drink industry is dominated by TCCC and PSC. The market is worth $6 billion. Each firm can decide whether to advertise, but advertising costs $1 billion to any firm undertaking it. Moreover, advertising will create only negligible new demand as the market is already saturated. So, for the purpose of this question, assume that the market remains at $6 billion regardless of advertising. If one firm advertises and the other does not, then the former captures the whole market. If both firms advertise, then TCCC captures 60% of the market and PSC captures 40% of the market, but the advertising must be paid for. If neither firm advertises, then the market is again split 60:40, with 60% going to TCCC and 40% to PSC. 1. Draw the payoff matrix for this game where each player’s payoff is equal to the value of market it captures less the cost of advertisement. 2. Do any of the firms have dominant strategies? If so, what are they? Is there a dominant strategy equilibrium? If so,…