Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 1, Problem 4MC
To determine
The negative impact on the hotels from not increasing the
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Experiment 1: Reference Pricing a. Place the two products together. Place a sign on one with a low price. Place a sign on the other with a high price (about 50 percent higher will do). Ask your research participants to evaluate the quality of each of the items and to tell which one they would probably purchase. b. Reverse the signs and ask other research participants to evaluate the quality of each of the items and to tell which one they would probably purchase. c. Place the two p<oducts together again. This time place a sign on one with a moderate price. Place a sign on the other with a price that is only a little higher (less than 10 percent higher). Again, ask research participants to evaluate the quality of each of the items and to tell which one they would probably purchase. d. Reverse the signs and ask other research participants to evaluate the quality of each of the items and to tell which one they would probably purchase.
Chapter 1 Solutions
Managerial Economics: A Problem Solving Approach
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