Question 4 You are selling two goods, 1 and 2, in a market consisting of three consumers with the following reservation prices: Reservation Price (Rands) Consumer Good 1 Good 2 Abby 40 120 Bella 80 80 Carla 120 40 The unit cost of each product is R50. 4.1 Compute the optimal prices and profits for each of the following scenarios: (a) the goods are sold separately (b) pure bundling (c) mixed bundling. 4.2 Which strategy would be most profitable? Explain why.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
icon
Related questions
Question
These are not graded questions as they are revision questions from my textbook
Question 4
You are selling two goods, 1 and 2, in a market consisting of three consumers with the
following reservation prices:
Reservation Price (Rands)
Consumer
Good 1
Good 2
Abby
40
120
Bella
80
80
Carla
120
40
The unit cost of each product is R50.
4.1
Compute the optimal prices and profits for each of the following scenarios:
(a) the goods are sold separately
(b) pure bundling
(c) mixed bundling.
4.2
Which strategy would be most profitable? Explain why.
Transcribed Image Text:Question 4 You are selling two goods, 1 and 2, in a market consisting of three consumers with the following reservation prices: Reservation Price (Rands) Consumer Good 1 Good 2 Abby 40 120 Bella 80 80 Carla 120 40 The unit cost of each product is R50. 4.1 Compute the optimal prices and profits for each of the following scenarios: (a) the goods are sold separately (b) pure bundling (c) mixed bundling. 4.2 Which strategy would be most profitable? Explain why.
Expert Solution
steps

Step by step

Solved in 6 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles Of Marketing
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
Marketing
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing: An Introduction (13th Edition)
Marketing
ISBN:
9780134149530
Author:
Gary Armstrong, Philip Kotler
Publisher:
PEARSON
MKTG 12:STUDENT ED.-TEXT
MKTG 12:STUDENT ED.-TEXT
Marketing
ISBN:
9781337407595
Author:
Lamb
Publisher:
Cengage
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning