4) You help couples book their perfect honeymoon. You currently offer plans for a cruise and...

 

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4) You help couples book their perfect honeymoon. You currently offer plans for a cruise and for a casino stay. Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits. a) Here are the customer preferences, and your cost are $100 for the first booking and $50 for each additional booking. Compare the profit with and without bundling. Which strategy should be used? Show your calculations. We Book Your Honeymoon Tour Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000 b) The sales manager also suggests that there is a possibility that some customers will never bundle. She says in some cases it might be possible to bundle and also offer each customer only the trip they prefer, a practice known as mixed bundling. You know that about 21% of your customers decline cruises because of seasickness. At least 12% decline the casino trip saying they don't believe in gambling. As a rough estimate, you initially estimate that approximately 33% of your customers will never bundle. Will mixed bundling increase profits? You must show the calculations that support your conclusion. 4) You help couples book their perfect honeymoon. You currently offer plans for a cruise and for a casino stay. Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits. a) Here are the customer preferences, and your cost are $100 for the first booking and $50 for each additional booking. Compare the profit with and without bundling. Which strategy should be used? Show your calculations. We Book Your Honeymoon Tour Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000 b) The sales manager also suggests that there is a possibility that some customers will never bundle. She says in some cases it might be possible to bundle and also offer each customer only the trip they prefer, a practice known as mixed bundling. You know that about 21% of your customers decline cruises because of seasickness. At least 12% decline the casino trip saying they don't believe in gambling. As a rough estimate, you initially estimate that approximately 33% of your customers will never bundle. Will mixed bundling increase profits? You must show the calculations that support your conclusion.

Answer rating: 100% (QA)

b Solution Givendata customer Preferences Cruise casino customer 1 000 3000 cueto mer 2 2000 ... View the full answer