100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Pricing and Monetization Strategies Assignments $5.89   Add to cart

Case

Pricing and Monetization Strategies Assignments

 6 views  0 purchase
  • Course
  • Institution

This document provides all four necessary team assignments that count for the final grade of pricing and monetization strategies. Assignment 1 is about Conjoint Analysis, Assignment 2 is about Simple Profit Maximisation, Assignment 3 is about Bundling, and Assignment 4 is about Customer Lifetime Va...

[Show more]

Preview 2 out of 13  pages

  • October 31, 2024
  • 13
  • 2024/2025
  • Case
  • Bart bronnenberg
  • A
avatar-seller
Pricing and Monetization Strategies Assignments:
Assignment 1: Conjoint Analysis
Problem 1 :




Consumer 1: Consumer 2:
The results indicate that consumer 1 () has a preference for a long-lasting battery life.
There is no preference when the battery life is lower than 4 days. Furthermore, there is a
strong preference for having features (accelero-meter, heart rate, smart phone notifications)
over not having these features. The most important feature is the accelero-meter (28,13),
which indicates that consumer 1 is more likely to buy a watch which includes the accelero-
meter compared to heart rate monitor (19,37) and smart phone notifications (18,13).
Consumer 1 shows preference for three display sizes; (1) 22 mm, (2) 28 mm, (3) 42 mmm,
and no preference for display size 38 mm. But the highest preference is regards to the 42
mm (18,76). Consumer 1 shows no preference for Samsung and high preference for Apple.
There is a high preference for low prices, the amount of preference decreases when price
increases. Consumer 1 prefers to have all features and best durability for the lowest price,
which will be very hard for a company to serve these needs.

In the part worths table it shows that consumer 2 () has a shared and a
preference for a watch with a two- or three-day battery life. Of the different accessories
(heart rate sensor, accelerometer and phone notifications) the most preferred accessory is
the heart rate sensor, and the least preferred accessories is the accelerometer. There is a
strong preference for a 42mm display and only Apple watches are considered. The preferred
price of the watch is between 199 and 299 euro. The three most important attributes are a
heart rate sensor (21,87), a low price (20,63), and that the watch is from the brand Apple
(20,62). Multiple preferences make sense, because Jasper has wider wrists, he prefers a
bigger watch, and because he doesn’t work fulltime, he prefers a cheaper watch. He also has
an iPhone and MacBook so that could explain the preference for Apple, and because he
does sport the heart rate sensor is most important for him.

Problem 2 :
(a) The preference rating (rating scale of 0 “would not buy”
-100 “would definitely buy”)
of consumer 1 for battery life is highest for a battery life of 4 days, compared to e.g.
12hrs or 1 day. The rating of 30 can be seen as a 30% chance the consumer would
buy the product in question. Since a preference of 30 is a relatively low preference
rating, the changes of consumer 1 buying even the most preferred option (4 days) is

, slim.

(b) For consumer 2, a battery life of 4 days is preferred over other durations such as 12
hours or 1 day. At first glance, this might seem like a similar preference to consumer
1. However, consumer 2 has a 60% likelihood of purchasing the product in question.
This rating is relatively high compared to other ratings and consumer 1's preference,
suggesting that consumer 2 is likely to buy the product when de duration is 4 days.

(c)




Consumer 1 is willing to pay €50 more for 4 days of battery life compared to 2 days.
Consumer 2 is willing to pay €150 more for 4 days of battery life compared to 2 days.

(d) Consumer 1 is €50 more willing to pay for 2 days of battery life compared to 1 day.
Consumer 2 is €150 more willing to pay for 2 days of battery life compared to 1 day.

(e)
WTP for Consumer 1: WTP for Consumer 2:
WTP increase from 12 hours to 1 day: €50 WTP increase from 12 hours to 1 day: €50
WTP increase from 1 day to 2 days: €50 WTP increase from 1 day to 2 days: €100
WTP increase from 2 days to 4 days: €50 WTP increase from 2 days to 4 days: €150
By comparing the increases in WTP, we can observe that Consumer 2 is more sensetive than
Consumer 1 to variations in battery life. This is due to the fact that, in comparison to
Consumer 1, Consumer 2 is willing to pay more for each extra day of battery life. As a result,
Consumer 2 is more price-sensitive about battery life.




Problem 3 :
(a)
€93.92
300 / (0.00 - 27.86) = -10.77
23.01 - 14.29= 8.72

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller RafaelHoutepen. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $5.89. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67474 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$5.89
  • (0)
  Add to cart