$1.$ Assuming Virgin Mobile's target segment $(14-$ to $24-$year$-$olds$),$ how should it structure its

pricing? Which of the suggested options would you recommend? In proposing your pricing

plan, please be as specific as possible with respect to various elements $$ contracts, size of the

subsidies, hidden fees, average per$-$minute charges, etc. $($It is important to carry out and

describe the necessary calculations to examine the impact of each one of these

elements.$)$

$2.$ Please provide evidence of the financial viability of your suggested pricing strategy. $($Hint:

You will need to conduct quantitative analysis using available case information to do

this. Using the customer lifetime value reading might be particularly useful to answer

this as well as the next question.$)$

$3.$ The cellular industry is notorious for high customer dissatisfaction. Despite the existence of

service contracts, the big carriers roughly churn $24\%$ of their customers each year $(2\%$ per

month$).$ Clearly, there is little loyalty in this market. What is the source of this

dissatisfaction? What role do pricing variables play in affecting the consumer experience?

Why haven't the big carriers responded more aggressively to customer dissatisfaction?

$4.$ How do the major carriers make money in this industry? What is the financial logic

underlying their pricing approach? Again, please explain in depth.

$5.$ How would you evaluate Virgin Mobile's value proposition