Complete the calculations for Total Revenue by determining how many customers will purchase at each of the segment prices. Then, explain what the maximum total revenue would be if you employed pure bundling. **Title: Online Self-Study Certifications for Social Work License**To assist social workers in obtaining necessary credit hours for recertification through the state’s social welfare office, a self-study certification system has been developed. This system incurs virtually no marginal cost for users. The following data, compiled by a marketing research team, details the pricing strategy for various customer segments:**Customer Segments and Pricing:**| **Segment** | **Number of Customers** | **Certification in Online Counseling** (TR Counseling) | **Certification as a Group Home Counselor** (TR Group Home) | **Bundle Price** (TR Bundle) ||-------------|------------------------|-------------------------------------------|-------------------------------------------------|------------------------------|| Segment 1 | 1000 | $190 | $70 | $260 || Segment 2 | 1000 | $150 | $90 | $240 || Segment 3 | 1000 | $95 | $160 | $255 || Segment 4 | 1000 | $35 | $195 | $230 |Each segment consists of 1000 potential customers. Pricing varies for certification in online counseling and as a group home counselor, with bundled pricing also available.**Analysis:**- Segment 1 has the highest price for online counseling certification but the lowest for group home certification.- Segment 4 offers the lowest price for online counseling certification but the highest for group home certification.- Bundle prices offer a potential discount when compared to purchasing certifications individually.This flexible pricing allows customers to select certification options based on their specific professional needs and budgetary constraints.

The amount of people that purchase at the given price would determine the individual pricing that…

2. You have developed a self-study certification system for those who need credit hours for recertification by your state's social welfare office. The system operates at virtually no cost, i.e., there is no marginal cost. A marketing research team has assembled the following sale information: Online Self Study Certifications for Social Work License Certification Segment 1 Segment 2 Segment 3 Segment 4 Customers 1000 1000 1000 1000 Certification in Online Counseling as a Group Home Counselor TR Counseling TR Group Home $190 $150 $95 $35 $70 $90 $160 $195 Bundle $260 $240 $255 $230 TR Bundle

2. You have developed a self-study certification system for those who need credit hours for recertification by your state's social welfare office. The system operates at virtually no cost, i.e., there is no marginal cost. A marketing research team has assembled the following sale information: Online Self Study Certifications for Social Work License Certification Segment 1 Segment 2 Segment 3 Segment 4 Customers 1000 1000 1000 1000 Certification in Online Counseling as a Group Home Counselor TR Counseling TR Group Home $190 $150 $95 $35 $70 $90 $160 $195 Bundle $260 $240 $255 $230 TR Bundle

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Complete the calculations for Total Revenue by determining how many customers will purchase at each of the segment prices. Then, explain what the maximum total revenue would be if you employed pure bundling.

**Title: Online Self-Study Certifications for Social Work License**

To assist social workers in obtaining necessary credit hours for recertification through the state’s social welfare office, a self-study certification system has been developed. This system incurs virtually no marginal cost for users. The following data, compiled by a marketing research team, details the pricing strategy for various customer segments:

**Customer Segments and Pricing:**

| **Segment** | **Number of Customers** | **Certification in Online Counseling** (TR Counseling) | **Certification as a Group Home Counselor** (TR Group Home) | **Bundle Price** (TR Bundle) |
|-------------|------------------------|-------------------------------------------|-------------------------------------------------|------------------------------|
| Segment 1 | 1000 | $190 | $70 | $260 |
| Segment 2 | 1000 | $150 | $90 | $240 |
| Segment 3 | 1000 | $95 | $160 | $255 |
| Segment 4 | 1000 | $35 | $195 | $230 |

Each segment consists of 1000 potential customers. Pricing varies for certification in online counseling and as a group home counselor, with bundled pricing also available.

**Analysis:**
- Segment 1 has the highest price for online counseling certification but the lowest for group home certification.
- Segment 4 offers the lowest price for online counseling certification but the highest for group home certification.
- Bundle prices offer a potential discount when compared to purchasing certifications individually.

This flexible pricing allows customers to select certification options based on their specific professional needs and budgetary constraints.

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