Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 12, Problem 12.4IP
To determine
The comparison between the strategies of Macintosh and iPhone.
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Managerial Economics: A Problem Solving Approach
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- Seven years ago, you started a cross-town delivery service. You have two types of deliveryservices. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb capacity bike trailer for anything weighting up to 10lbs. Initially, you charged the same price for each service, but since the beginning of the Covid19 pandemic you have seen an increased in the demand for your package service. The demand for the package services seems to be more inelastic than the demand for parcels. You are now wondering if you should charge different prices for the parcel and package service or should you segment the market and charge two different prices? Complete the tables below and determine the best price strategy: price the services differently in each segment; or continue the one price policy? The Parcels Market Price Parcels TR MR TC MC MR-MC…arrow_forwardSeven years ago, you started a cross-town delivery service. You have two types of deliveryservices. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb capacity bike trailer for anything weighting up to 10lbs. Initially, you charged the same price for each service, but since the beginning of the Covid19 pandemic you have seen an increased in the demand for your package service. The demand for the package services seems to be more inelastic than the demand for parcels. You are now wondering if you should charge different prices for the parcel and package service or should you segment the market and charge two different prices? Complete the tables below and determine the best price strategy: price the services differently in each segment; or continue the one price policy? The Packages Market Price Packages TR MR TC MC…arrow_forwardSeven years ago, you started a cross-town delivery service. You have two types of deliveryservices. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb capacity bike trailer for anything weighting up to 10lbs. Initially, you charged the same price for each service, but since the beginning of the Covid19 pandemic you have seen an increased in the demand for your package service. The demand for the package services seems to be more inelastic than the demand for parcels. You are now wondering if you should charge different prices for the parcel and package service or should you segment the market and charge two different prices? Complete the tables below and determine the best price strategy: price the services differently in each segment; or continue the one price policy? Combined Parcels & PackagesPrice Parcels and Packages TR MR TC MC MR-MC…arrow_forward
- Only typed explanation of all four subparts otherwise leave itarrow_forwardQuestion:You work as an analyst for the electronics manufacturing firm Hypra!!!, based in Japan. Hypra!!! started as a textile manufacturing firm in the 1950s but from the 2000s it switched to produce the product called x, a high-tech gadget, extremely popular in Japan, but less so in other countries (yet). There are two main groups of consumers who are interested in x. First, teenagers use it for gaming. Second, middle-aged managers are also keen to use it as a personal assistant, not unlike Siri on Apple devices. Presently, four firms are producing x. Hypra!!! has a 38% market share. The x is sold both by specialist stores and the large hypermarkets across Japan. The most important component of the x is called chip+++, which requires a very specific technology, and, therefore, is only produced by two Japanese suppliers, working strongly together with the x producers. A new version of the x tends to be introduced every second year. Hypra!!! has always been the most innovative of the…arrow_forwardA new tropical fruit juice product was entering the marketplace. The director of marketing for the company would like to know which advantage should be emphasized in advertisements, and which advertisement is better for sales. Nine cities with similar demographics are chosen, and a different combination of Media and Marketing Strategy is tried. The unit sales of tropical fruit juice for the eight weeks are shown in the two-way table below. Media Marketing strategy Convenience Quality Price Television 492, 630, 559, 447, 480, 624, 547, 444 464, 559, 759, 558, 528, 670, 534, 657 678, 628, 591, 633, 684, 761, 691, 549 Social Media 464, 559, 759, 558, 528, 670, 534, 657 710, 650, 705, 653, 577, 837, 629, 799 705, 585, 527, 499, 515, 566, 710, 547 Newspaper 690, 650, 705, 653, 577, 825, 629, 799 577, 616, 708, 486, 480, 652, 585, 538 803, 583, 825, 597, 813, 564, 708, 615 At the 0.05 level of significance, is there an interaction…arrow_forward
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