Marketing Analytics Exam
1. A prescription drug is produced in the United States and sold internationally. Each unit of the drug costs $60 to produce. In the German market, you sell the drug for 150 Euros per unit. The current exchange rate is 0.667 U.S. dollars per euro. Current demand for the drug is 100 units, and the estimated elasticity is 2.5. Assuming a linear demand curve, determine the appropriate sales price (in Euros) for the drug.
2. Given the following information in the table for four products, find the profit- maximizing price for each product.
|
Product
|
Lowest Price
|
Medium Price
|
High Price
|
Low Price Demand
|
Medium Price Demand
|
High Price Demand
|
Unit Cost
|
|
Product 1
|
$1.40
|
$2.20
|
$3.00
|
100
|
40
|
5
|
$1.10
|
|
Product 2
|
$2.20
|
$3.00
|
$4.00
|
200
|
130
|
25
|
$1.50
|
|
Product 3
|
$45.00
|
$75.00
|
$95.00
|
400
|
300
|
130
|
$40.00
|
|
Product 4
|
$200.00
|
$250.00
|
$300.00
|
600
|
300
|
50
|
$120.00
|
3. Before publishing a hardcover book, a publisher wants to determine the proper price to charge for the hardcover and paperback versions. The file paperback.xlsx contains the valuations of 50 representative potential purchasers of the book. Suppose the unit cost of the hardcover book is $4 and the unit cost of the paperback is $2. If the bookstore charges double what it pays the publisher, what price should the publisher charge the bookstore for each version of the book?
4. Joseph A. Bank often has a deal in which men can buy one suit and get two free. The file Banks.xlsx contains the valuations of 50 representative customers for one, two, or three suits. Suppose it costs Joseph A. Banks $150 to ready a suit for sale. What strategy maximizes Joseph A. Banks profit: charging a single price for each suit, charging a single price for two suits, or charging a single price for three suits?
5. A flight from New York to Atlanta has 146 seats. Advance tickets purchased cost $74. Last-minute tickets cost $114. Demand for full-fare tickets is normally distributed with a mean of 92 and standard deviation of 30. What booking limit maximizes expected revenues? Assume there are no no-shows and always enough advanced purchasers to fill the flight.
Text book - Marketing Analytics: Data-Driven Techniques with Microsoft Excel, by Wayne L. Winston, Wiley Publishing, 1st Edition, ISBN: 978-1-118-37343-9.
Attachment:- Assignment.rar