Quantitative Marketing Assignment Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Phase 1

1) Based on the survey results, recommend a percentage mark-up for the subscription pricing. Please show your work.

The percentage markup that has been calculated for the subscription pricing is 15%. This rate has been calculated based upon the change in the price that is 75%, which affects the costs of device and the costs of the subscription. In order to calculate this markup, it has been assumed that the cost of the device and the cost of subscription is 70% and 30% of the price respectively. The calculations are shown in the appendix.

2) What concerns, if any, do you have with this survey and its ability?

There are many concerns regarding this survey, which should have been considered. First of all, the demographic factors have not been considered. The population has not been defined. The age groups have also been not defined and the income of different groups of the population have also not been considered. Furthermore, the occupation of different classes of individuals should have also been identified in advance.

It also seems that the firm did not have any clear objectives for this survey. It should have either merged phone with the service or with the contract. The company should have asked its people open ended questions such as what price they were willing to pay and what would be the reasons due to which they won’t be buying the services of the company.

Phase 2

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

The price elasticity of demand is defined as the change in demand by the change in price which is negative 0.75. Furthermore, the standard error of 1.2 shows that there is a lot of variation in the data. Therefore, it is recommended for the firm to charge same prices and not change the prices frequently.

Phase 3

1) a. Consider the current subscription plan offered by the firma 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 demand curve has been plotted in the excel spreadsheet.

b. Now supposed 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 1a.

The demand curve has been plotted in the excel spreadsheet.

2) Supposed the firm only offers the plan in 1(a). What is the revenue-maximizing, monopoly price of the subscription for a month of service?

If the firm adopts the plan as in 1a, then the revenue maximizing price for the subscription as a monopoly would be $ 16.52.

3a. What are the revenue maximizing, monopoly price for the basic phone service on the LG device and the revenue maximizing, monopoly price for the optional content bundle? Show your work.

The revenue maximizing price for the subscription as a monopoly would be $ 16.52 and for the optional content bundle would be $ 12.93 as shown in excel spreadsheet.

3b. How do the revenues from this scheme compare with the scheme in Q2? Does your answer make intuitive sense? Why or why not?

The scheme in this question is similar to the scheme in the previous question since the monopoly price has been determined for both the cases. Furthermore, it makes an intuitive sense because the monopoly firm would charge the maximum price possible in the market.Quantitative Marketing Assignment Case Solution

QUESTION 2: Childcare Services Pricing in a Ski Resort

1) Given these costs, what price does the business actually charge?

Based on the given costs, the prices charged by the business in winter season would be $ 136 per child and in other 3 seasons would be $ 91 per child. The calculations are shown in excel spreadsheet.............

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