Question

In: Statistics and Probability

If seller charge $799 for the monitor, $1,499 for the computer,and $1,700 for the bundle....

  1. If seller charge $799 for the monitor, $1,499 for the computer, and $1,700 for the bundle. Which of the pricing strategies the seller uses?

(3 pts)

  1. If seller charge $799 for the monitor, $1,499 for the computer, and $1,700 for the bundle. The seller earns a revenue of _______.(3 pts)

Customer

Computer

Monitor

1

900

800

2

1100

600

3

1300

400

4

1500

200

Solutions

Expert Solution

part 1 :

Strategy used : Mixed Bundling

Mixed bundling means the seller offers a different price for each available combination of products.

part 2 :

With mixed bundling the seller charges $799 for the monitor, $1,499 for the computer, and $1,700 for the bundle.

Customer 1 buys just a monitor, Customer 4 buys just a computer, and Customers 2 and 3 buy the product bundle.

revenue = $800 + $1700 + $1700 + $1500

revenue = $ 5700


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