The managers of Insights Care Magazine (a magazine dedicated to healthcare news) want to establish a...

 

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The managers of Insights Care Magazine (a magazine dedicated to healthcare news) want to establish a selling price for a one-month full-page advertisement in their magazine. To help with the price setting decision, the managers intend to compute the economic value to the customer (EVC) of a full-page ad in their magazine. The following data been gathered related to the Insights Care magazine and their primary competitor, Medgate Today Magazine. No. of readers Percent of readers who buy advertised products each month Monthly spending per reader who buys advertised products Contribution margin ratio of advertisers Insights Care Magazine 150,000 0.90% $140 35% Medgate Today Magazine 220,000 0.70% $120 35% Medgate Today magazine $6000 per month for a full-page ad. Insights Care's managers believe that they can justify a higher selling price by quantifying the economic value to customer (EVC). Based on the above data available, you are required from a value-based pricing standpoint to: Required: a. Compute the Economic value to customer (EVC) of a full-page ad in Insights Care Magazine. b. Show the range of possible prices Insights Care Magazine should consider when setting a price for a full-page ad? The managers of Insights Care Magazine (a magazine dedicated to healthcare news) want to establish a selling price for a one-month full-page advertisement in their magazine. To help with the price setting decision, the managers intend to compute the economic value to the customer (EVC) of a full-page ad in their magazine. The following data been gathered related to the Insights Care magazine and their primary competitor, Medgate Today Magazine. No. of readers Percent of readers who buy advertised products each month Monthly spending per reader who buys advertised products Contribution margin ratio of advertisers Insights Care Magazine 150,000 0.90% $140 35% Medgate Today Magazine 220,000 0.70% $120 35% Medgate Today magazine $6000 per month for a full-page ad. Insights Care's managers believe that they can justify a higher selling price by quantifying the economic value to customer (EVC). Based on the above data available, you are required from a value-based pricing standpoint to: Required: a. Compute the Economic value to customer (EVC) of a full-page ad in Insights Care Magazine. b. Show the range of possible prices Insights Care Magazine should consider when setting a price for a full-page ad?

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