1) Note: No reference is needed in this question -The B2B company mobiCRM offers CRM cloud solutions for mobile marketers (i.e., app developers) that helps them manage the users that actively engage with their apps.

Currently mobiCRM offers two products: iOS-CRM and Android-CRM for managing users of iOS and Android apps, respectively. Each product allows one customer (i.e., mobile marketer) to manage any number of apps of their respective operating system. That is, for a fixed subscription price iOS-CRM allows mobile marketers to manage multiple iOS apps, but they cannot manage any Android apps.

For each mobile marketer that contracts mobiCRM products, mobiCRM incurs monthly variable costs of 1060 for the iOS-CRM product, and 940 for the Android-CRM product.

A marketing research study conducted by mobiCRM reported that the market of mobile marketers consists of 4 equally sized segments; each segment with a different willingness to pay for the iOS-CRM and Android-CRM products depending on which device their current users use the most. The results of this study are shown in Table 1.

Table 1: Willingness to pay for mobiCRM products for each segment (in monthly GBP)

		Product
Segment		iOS-CRM (cost = 1060)	Android-CRM (cost = 940)
Segment A		1300	340
Segment B		1300	1120
Segment C		1240	1180
Segment D		700	1180

For all calculations, you can assume each segment consists of a single customer (i.e., mobile marketer).

1. What would be the profit-maximizing prices of each CRM product if mobiCRM were to sell their products independently?
2. mobiCRM is interested in moving away from selling their products individually, to selling them exclusively in a bundle. What would be the price of this bundle that would maximize profits? How does this pricing strategy compare with question a)? Note that in this scenario iOS-CRM and Android-CRM cannot be sold separately.
3. What would be the best possible pricing strategy to maximize total profits? You may assume that all else equal, a customer may prefer two CRM products to one. 4. For those customers that subscribe the bundle, how should mobiCRM manage their communications to increase the perception of get value that they are getting from the bundle? Explain why.