What pricing strategy will yield the greatest revenue

Reference no: EM13184296

A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacture has determined that men value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple microwave at $80 and one with auto-defrost at $150. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? What if women compromise the bulk of microwave shoppers?

Reference no: EM13184296

Questions Cloud

What is the overall welfare loss to venezuela : Calculate the quota's redistributive effect, consumption effect, protective effect, and revenue effect. Assuming that Venezuelan import companies organize as buyers and bargain favorably with competitive foreign exporters, what is the overall welfa..

Compute the capacitive reactance and the impedance : Calculate the capacitive reactance, the impedance, and the phase angle, phi, for a series RC circuit having a frequency, f of 1.00e+04 Hz, resistance,

Prediction trap is one of the phycological : Prediction trap is one of the phycological...we often are overconfident in our expectataions about future events. Have you fallen for this trap? How can we avoid it?

State the major organic product formed when bromobenzene : DRAW skeletal structure of the major organic product formed when bromobenzene encounters solid Mg in an ether solvent.

What pricing strategy will yield the greatest revenue : A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value t..

Where was the meeting held and when did it take place : Where was the meeting held? When did it take place? Why was the meeting held? Who was in charge of the gathering? What European powers were present?

Explain temperature for household freezers : At -13.0 °C (a common temperature for household freezers), what is the maximum mass of sucrose (C12H22O11) you can add to 3.00 kg of pure water and still have the solution freeze?

Is bundling more profitable than selling separately : At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot p..

Why the supply of applicants for dock jobs is great : Labor unions face many challenges-including changing technology, foreign competition, and declining membership. But one union occupation thrives-dockworkers. The 100,000 members of the two longshoremen unions handle nearly every item or shipping c..

User Account

All Pages