Annie's Arborist Service is considering expanding her business to sell apple trees. She has one competitor...
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Annie's Arborist Service is considering expanding her business to sell apple trees. She has one competitor in town, Sam's Shrubs. Annie is interested in estimating her potential market share, sales and profits for apple trees at various prices. Sam's currently sells only Golden Delicious apple trees and Annie is planning on selling Gala. She had recently read about using conjoint analysis, so she contacted RonPaul Analytics, who ran the following study for her. (20 points in total, 4 points each) Attribute Level Price $15.95 Apple Brand $19.95 $24.95 $29.95 Golden Delicious Gala Annie's Sam's Part-Worth Utility 0.71 0.34 -0.30 -0.75 0.22 -0.22 0.41 -0.41 What is the estimate for market share for Annie if she sells Gal Apple Trees at $15.95 vs. Sam selling golden Delicious trees at $24.95 ? Annie's Arborist Service is considering expanding her business to sell apple trees. She has one competitor in town, Sam's Shrubs. Annie is interested in estimating her potential market share, sales and profits for apple trees at various prices. Sam's currently sells only Golden Delicious apple trees and Annie is planning on selling Gala. She had recently read about using conjoint analysis, so she contacted RonPaul Analytics, who ran the following study for her. (20 points in total, 4 points each) Attribute Level Price $15.95 Apple Brand $19.95 $24.95 $29.95 Golden Delicious Gala Annie's Sam's Part-Worth Utility 0.71 0.34 -0.30 -0.75 0.22 -0.22 0.41 -0.41 What is the estimate for market share for Annie if she sells Gal Apple Trees at $15.95 vs. Sam selling golden Delicious trees at $24.95 ?
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The estimate for market share for Annie is 71 The market share is ... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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