Question: Consumer Type: PowerPoint Excel Word ENGINEER $60 $175 $75 CUSTOMER $125 $80 $135 EXECUTIVES $75 $100 $140 The above table contains the maximum prices different

Consumer Type: PowerPoint Excel Word

ENGINEER $60 $175 $75

CUSTOMER $125 $80 $135

EXECUTIVES $75 $100 $140

The above table contains the maximum prices different types of consumers are willing to pay for three software titles: PowerPoint, Excel and Word.Suppose there are 100 consumers of each type.

a. Which of the following three strategies has the chance of generating the highest revenue for Microsoft?

Support your answers with revenue estimates for each strategy.

Strategy A.Charge a single price of $315 for the bundle of PowerPoint, Excel and Word

Strategy B.Charge $60 for PowerPoint, $80 for Excel and $75 for Word

Strategy C.Charge$125 for PowerPoint, $175 for Excel and $140 for Word

The best strategy among A, B, and C is...

Can you suggest a strategy that would produce higher revenue that any of the above three strategies? Support your answer with numbers.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Please do these questions: -What sources of value most plausibly account for the differences between buyer and seller? -Structure and execute a discounted cash flow valuation of all of the MW...

Hi There, I need someone to help me with the attached finance worksheet. There are 3 problems in this excel file - one problem on each individual tab. I am attaching a couple of additional files as...

4. Using the financial ratios provided by eVal, evaluate any trends in Royal Caribbean?s return on equity, compare it with Carnival Cruise?s return on equity, and discuss the main causes of any...

1. Referring to the data in Exhibit 5, is the process capable of meeting GME's internal wire-bond strength requirement of at least seven grams? Use Cpk in explaining your answer. 2. Referring to the...

Attached is the assignment requirement and 2 previous assignments as example 1- the assignment should be zero plagiarism and similarity (no copy ans paste is accepted) 2- should be completed in the...

PLEASE ANSWER ME THE QUES 7 AND 8 , THANKS VERY MUCH. NEEDING DETAILED INFORMATION. \freport high account receivable or low current liabilities segregation of duties,double checks, recheck the...

You have learned the concepts of "reservation price" and "consumer value. Let us see how the bundling strategy can possibly increase a company's profit in real-life business settings. The following...

What might the company do to improve its competitive position? Describe options and the strategic advantage(s) of these options. Consider both competitive and cooperative options. What is your...

Instructions: Depending on your Excel skill level, you may find this assignment challenging 1. This assignment is from Extended Learning Module D in your textbook. Locate the chapter, and review the...

A heliumneon laser emits light that has a wavelength of 632.8 nm. The circular aperture through which the beam emerges has a diameter of 0.500 cm. Estimate the diameter of the beam 10.0 km from the...

What is meant by the term student syndrome?

What is the difference between a job and a role?

In Unit III, you sent a document in which you informed management at Gemstone Fabricators, Inc. that it would need to enhance its accountability specifications in its performance evaluations for...

7. How can the models we use have a detrimental effect on others?

2. In this chapter, the reader should reflect on the following concepts: Systemic structuring, the displaced error, the communicable part of knowl-edge, tacit knowledge, hidden knowledge, analogy,...

2. List five points that are crucial to pay attention to if you want to positively influence someone from a foreign culture.