Question 1: The launch of a new wireless content technology?

PHASE I

1. Based on the survey results, recommend a percentage markup for the subscription pricing. Please show your work.

A: The survey result shows that the percentage of people that agree to buy the device.

The table shows that 30% have agreed to buy the device for the $275 amount. And 20% have agreed on the $400 amount.

As per your survey, we have recommended that $275 is a better option to sell the device. Because the 30% people agreed to buy and its shows a huge difference between the $400 that only 20% have agreed to buy.

2. What concerns, if any, do you have with this survey and its ability to provide meaningful information for the pricing of the subscription plan? Explain.

A: According to the survey,50% chances would be to buy the device for $400 or $275. Due to this survey, the company has got the idea for selecting the exact amount for selling the device. And which value should be taken for profit.

But in this survey,we also have some concerns mentioned such as this survey is only conducted by the US malls not involved the other place that device might be used.it might have different opinion occurred. Other than that the percentage of $275 is greater than the percentage of $400. But it's not guaranteed that in long run the $275 will provide the profit for the company.

Assignment Harvard Case Solution & Analysis

PHASE II

1. Make a price recommendation based on these estimates. Please explain any concerns or caveats you might have with your recommendation.

A: As the estimated result showsthat the demand of the elasticity price is in negative. When the retailer offered a promotion on the selling price, on this price estimation, the company might have to lose the brand name and the company might have to sell the product in a less amount. In short term, it affects purchase acceleration, switching the product and it might have an effect on the consumption rate. In the long-term, it affects directly on the product loyalty.

PHASE III

1. Demand Analysis:
2. Consider the current subscription plan offered by the firm and assume it is the only service offered: basic service on the LG Device with content from NBC, CBS, and ESPN. Plot the EVC demand curve for this subscription plan. Be sure to label your graph clearly.

The Y-axis shows the prices of different companies which are assumed because we are not given those values. The X-axis shows the quantity value which is already given in the table.

1. Now suppose the firm also offers an alternative plan consisting of basic phone service on the LG device with content from NBC, CBS, ABC, ESPN and STARZ for $50 per month. Plot the new EVC demand curve for the plan offered in 1 (a).

The Y-axis shows the prices of different companies which are assumed because we are not given those values. The x-axis shows the quantity value which already given in the table...........................

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