Q1 Why might Mattel set a much lower contribution margin on its Barbie dolls than on the accessories for the dolls?
Think about how you would do pricing if you were the seller. .Note that consumers differ in their willingness to pay for the Barbie experience.
A manufacturer of microwaves has discovered that male shoppers have little value for micro-waves and attribute almost no extra value to an auto- defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto- defrost feature. There is little that men value a simple microwave at $ 70 and one with auto- defrost at $ 80 while women value a simple microwave at $ 80 and one with auto-defrost at $ 150. If there is an equal number of men and women, what pricing strategy will yield the great-est revenue? What if women compromise the bulk of microwave shoppers?
Q2 Assume the following: 1) the market for woment and the market for men are not separated. In other words, you cannot charge for men and woment differently. 2) each person does not purchase more than one microwave.