Suppose Mattel, the producer of Barbie dolls and accessories
(sold separately), has two types of consumers who purchase its
dolls: low-value consumers and high-value consumers. Each of the
low-value consumers tends to purchase one doll and one accessory,
with a total willingness to pay of $48. Each of the high-value
consumers buys one doll and two accessories and is willing to pay
$93 in total.
Mattel is currently considering two pricing strategies:
Suppose Mattel The Producer Of Barbie Dolls And Accessories Sold Separately Has Two Types Of Consumers Who Purchase 1 (50.31 KiB) Viewed 35 times
In the following table, indicate the revenue for a low-value and a high-value customer under strategy 1 and strategy 2. Then, assuming each strategy is applied to one low-value and one high-value customer, indicate the total revenue for each strategy. Revenue from Low-Value Customers Revenue from High-Value Customers $93 Value, 2 Accessories ($) Total Revenue from Strategy ($) $48 Value, 1 Accessory ($) Strategy 1 $24 doll + $24 $ $ $ accessory Strategy 2 $3 doll + $45 accessory $ $ $ The strategy that generates the most revenue is strategy
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!