Group to that each consumer belong to explain how

Reference no: EM1328717

Average price elasticity

Your firm has identified two distinct groups of consumers for its product - each which consist of 50% of the market. Your market research suggests that group A has a price elasticity of demand of 4. Group B has a price elasticity of demand of 2. Assume that your marginal cost of producing your product is $10.

(1) If you could identify which the group to which each consumer belong, how would you go about setting prices? Outline the price(s) that you would charge and suggest strategies that you might use to implement the price(s)?

(2) If you cannot identify which each consumer belong to, how would you go about setting prices? Outline the price(s) that you would charge and suggest strategies that you might use to implement the price(s)?

Reference no: EM1328717

Questions Cloud

Private ownership of storage space : The answer to Business Logistics/Supply Chain Management and Compare and contrast private ownership of storage space to rented storage space

Explaining four different definitions of leadership : Go to the Internet and find four different definitions of leadership, preferably those stated by well-known leaders.

Give description of the network design plan : For the equipment price list, make up price list based on fair market value for each peice of equipment. Do the same for the labor costs.

Discussing the three strike law : Define and discuss what the pros and cons of the threes strike laws are why many support this law.

Group to that each consumer belong to explain how : If you could identify which the group to that each consumer belong to explain how would you go about setting prices.

The doritios locos taco by taco bell : How can the Doritios Locos Taco by Taco Bell imporve the following:

Describe the role of a buyer : Describe the role of a buyer in an organization's supply chain and purchasing process. Why would a buyer need to be familiar with the supply chain of his or her organization?

Explain what are the 4 r''s of next generation marketing : Explain what are the 4 R's of Next Generation Marketing and Explain EBusiness and Give a marketing definition for each

Write and assemble the programs : Write down and assemble the following programs and include the start and end addresses for all memory addresses. Show results in following format.

User Account

All Pages