Your company sells health food porducts and you have recently developed a new high protein drink (H Show more Your company sells health food porducts and you have recently developed a new high protein drink (HPD) as well as a high carb energy bar (HCE).
Your company sells health food porducts and you have recently developed a new high protein drink (H Show more Your company sells health food porducts and you have recently developed a new high protein drink (HPD) as well as a high carb energy bar (HCE).
As the product manager for the firm you are responsible for setting the pricing policy for the new products. You are considering a bundled package that includes both products and you assume the marginal cost of production is zero for planning purposes. You have identified four basic types of consumers who may buy these products and their reservation prices for the new products are provided in the following table: type hpd hce a $0.50 $1.80 b $0.80 $1.10 c $1.00 $0.90 d $1.40 $0.30 a. Suppose you sell the two products seperately and each buyer is expected to purchase one unit of the product per day. What prices for HPD and HCE maximize daily revenue? What is your daily revenue from selling both products to the 4 customers under sepearate pricing? b. If you offer the two products under a pure bundling strategy what is revenue maximizing bundle price? What is the daily sales revenue from the pure bundling scheme? c. Please develop a mixed bundling strategy that generates higher daily sales revenue than the pure bundling strategy. What is the daily sales revenue generated under mixed bundling? Show less
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