Read the case titled Robin's Risky Re-Do 

Review the information in the appendices included with the case to make an informed decision by answering all questions. 

 

Answer the following questions:

 Determine the level of profitability for each market segment.

Evaluate the future profit potential of each market segment.

In which market segment(s) should Robin focus to increase the profitability of the business? Justify the recommendation.
Suppose the decision is to continue operating the business, which service(s) would you recommend eliminating, if any? Justify the recommendation.
Suppose the decision is to continue operating the business, would you recommend adding any services? Justify the recommendation.
Suppose the decision is to continue operating the business, should Robin increase or decrease prices? Justify the recommendation.
Suppose the decision is to continue operating the business and revise the pricing strategy, which pricing strategy do you recommend Robin use (based on cost, competition, or perceived value)? Justify the recommendation.

Suppose the decision is to continue operating the business, would you recommend Robin to use the dynamic pricing strategy? Justify the recommendation.

Answer rating: 100% (QA)

1 Determine the level of profitability for each market segment Market Segment 1 Professional Women This market segment is the most profitable for Robins salon generating an average profit of 1200 per ... View the full answer