Complex pricing strategy of disney with the movie mulan

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Reference no: EM133396008

Question 1. Movie pricing:
a. Using the concepts studied in class, explain the complex pricing strategy of Disney with the movie Mulan.
b. Does Disney satisfy the conditions for using this complex pricing strategy? Briefly explain.
c. What is Disney assuming about the elasticity of demand of individuals who want to watch Mulan right when it comes out?

Question 2. Apple phone pricing:
a. Explain whether Apple satisfies the conditions for using a complex pricing strategy, and which type of complex pricing strategy Apple is using.
b. Suppose that the marginal cost of producing the iPhone SE is constant at $100 and the marginal cost of producing the iPhone 12 Pro is constant at $900. Under these cost conditions, does their complex pricing strategy make sense?

Question 3. Home grocery delivery pricing:
a. Explain the rationale of Walmart's grocery delivery service: $13/month for unlimited delivery.
b. How does Amazon Prime serve as a switching cost?
c. If Walmart can successfully implement its own switching cost, how would it impact their market power?
d. Could the implementation of a switching cost backfire? Explain.

Reference no: EM133396008

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