What price point should the golf course be indifferent

Assignment Help Marketing Management
Reference no: EM133343059

Question: Bill Murray, E-Z-Go's golf cart sales rep for Northern IN, is going to meet with the team that manages Warren Golf Course. His plan is to convince them to switch its fleet of golf carts from Yamaha to EZ-Go. He knows his success will largely be determined by the price he quotes. First, Bill knows the the golf course plans to keep any new fleet of golf carts for 5 years, for a total of 10,000 operating hours. Whenever the fleet is not fully available, Warren's mgt team estimates it costs the course $50,000 in lost profits (Assume the golf course will only incur this loss for the 1st fleet-wide failure, and that the manufacturer will reimburse Warren for lost profits due to subsequent failures). A fleet of 20 new Yamaha golf carts is priced at $60,000. When electricity and maintenance costs are factored in, the Yamaha fleet will cost $10/hr to operate. The probability of the Yamaha fleet being unavailable at some point during the 10,000 operating hours is 75%. By contrast, an EZ Go fleet costs $11/hr to operate, but the probability of a fleet wide failure is only 5%. At what price point should the golf course be indifferent to a fleet of 20 new EZ golf carts

TEV = (price of the next-best alternative) + (value of the performance differential)

Reference no: EM133343059

Questions Cloud

Review your previous creative strategy : creativity of this brief and completion of this brief that connects to their company, they will decide to hire you for this project and many other ones with
Top place on planet earth to watch a movie : Top place on planet earth to watch a movie," it is using exploitation. niche marketing. puffery. deceptive advertising. unfair advertising
Create one search and one display ad geared towards : Create one search and one display ad geared towards achieving your marketing goals and considering your keyword research (please provide screenshots)
Did wendys twitter campaign increase the company sale : Did Wendys Twitter campaign increase the company's sales and profits? Use the customer journey to speculate about why and how it might or might not have
What price point should the golf course be indifferent : The probability of the Yamaha fleet being unavailable at some point during the 10,000 operating hours is 75%. By contrast, an EZ Go fleet costs $11/hr
Explain the difference between a pool and a compartment : Explain the difference between a pool and a compartment when considering how nutrients cycle through the environment. Simple answer.
Identify five examples of sources of global information : Identify five examples of sources of global information and/or demographics, and what type of information/data can be collected from each of the sources you
Identify who the target audience should be : What secondary data would be useful to identify who the target audience should be for this business and what qualitative research techniques would
How does the organization create value for these customers : Reflect on how organization has succeeded thanks to effective use of marketing and What customers does it serve? Why are they a good fit

Reviews

Write a Review

Marketing Management Questions & Answers

  Integrated marketing communication

Developing an IMC plan of Amazon that aims to create awareness and knowledge amongst Singaporean  consumers of the ethics involved in buying clothing made from Bangladeshi factories  .

  Multiple choice questions on e-commerce

The assignment in Computer Science or Information Technology is about multiple choice questions, particularly in e-commerce. Questions such as types of e-commerce websites, commercial websites, disintermediation, Platform for Piracy, the data that ca..

  Balanced scorecard for red lobster

The assignment in marketing is about Red Lobster, which is one US and Canada's most loved seafood restaurant. It has hundreds of outlets in US and Canada and it now wants to expand further. The approach adopted by Red Lobster has been discussed in fu..

  Marketing plan - marketing audit, swot and smart report

The assignment in marketing is about preparing a marketing plan. As part of marketing plan, the SWOT analysis, assessing the competitive position, identifying critical competitive issues, marketing objectives, strategy and actions have been suggested..

  Marketing plan

Marketing deals with preparing a marketing plan for either an existing product or a new product. Various aspects about launching a new product into the market are discussed ranging from the industry the product belongs to, goals and vision of the com..

  Yamato corporation analysis - harvard case study

Please refer to the PDF for the Case Study and questions.The case study from Harvard Business School is about Yamato Corporation, a parcel delivery company which provides door to door delivery in Japan.

  Marketing plan - create a new product

The assignment in marketing is about competitive analysis for a new product namely "heated insoles". These heated insoles can be put in shoes and they can protect the wearer's feet by keeping them warm during cold winters.

  Report on digital marketing strategy for a website

Promotion strategies of  the one's own developed website

  Integrated marketing campaign of mccafe

Integrated marketing campaign for McDonald's McCafe. McCafe has been launched in Canada. This is a case study which involves the use of digital marketing and social media marketing apart from regular marketing such as TV and radio. All these more are..

  New product development at adidas

In this paper, the researcher also determines the different kind of practices used by Adidas to manufacture shoes for its customers.

  Managing services in competitive environment

Services can be defined as separately identifiable, intangible activities which provide want-satisfaction when marketed to household consumers and/or industrial users.

  Prepare a marketing plan

A marketing plan is an essential tool for any marketer, providing direction for a brand, product or organization. A marketing plan describes the marketing environment, marketing objectives and marketing strategies.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd