Concept explainers
Tipping points in daily deal transactions? Online “daily deal” sites (e.g., Groupon) offer customers a voucher to purchase a product at discount prices. However, the number of voucher purchases must exceed a predetermined number before the deal becomes active. This key number is termed the “tipping point” in marketing. Characteristics of the tipping point were investigated in the Journal of Interactive Marketing (February 2016). A sample of 2,617 vouchers purchased from daily-deal sites in Korea had a
Want to see the full answer?
Check out a sample textbook solutionChapter 6 Solutions
Statistics for Business and Economics (13th Edition)
Additional Math Textbook Solutions
The Practice of Statistics for AP - 4th Edition
Research Methods for the Behavioral Sciences (MindTap Course List)
Elementary Statistics (13th Edition)
Statistics for Business & Economics, Revised (MindTap Course List)
Essentials of Statistics, Books a la Carte Edition (5th Edition)
Elementary Statistics Using the TI-83/84 Plus Calculator, Books a la Carte Edition (4th Edition)
- A local manufacturer is in the process of introducing a new product to all of its retailers. The manufacturer has conducted a survey of consumers, as well as performed trial runs with selected retailers, and discovered the following information about demand for the new product at various price levels: Demand for New Product Quantity Demanded(Number of Units) Price per Unit ($) 300 15 250 25 200 35 150 45 100 55 50 65 0 75 The manufacturer has the following information about how many units they are willing to supply to each retailer at various price levels: Supply for New Product Quantity Supplied(Number of Units) Price per Unit ($) 0 7.50 50 22.50 100 37.50 150 52.50 200 67.50 250 82.50 300 97.50 At what quantity and price will both manufacturer and consumer find equilibrium? And what factors could affect the demand and supply for the new product? When using mathematical concepts to model demand and supply, what parameters must be…arrow_forwardExercise 2.2. A three-man board, composed of A, B, and C, has held hearings on a personnel case involving an officer of the company. This officer was scheduled for promotion but, prior to final action on his promotion, he took a decision that cost the company a good deal of money. The question is whether he should be (1) promoted anyway, (2) denied the promotion, or (3) fired. The board has discussed the matter at length and is unable to reach unanimous agreement. In the course of the discussion it has become clear to all three of them that their separate opinions are as follows: • A considers the officer to have been a victim of bad luck, not bad judgment, and wants to go ahead and promote him but, failing that, would keep him rather than fire him. • • B considers the mistake serious enough to bar promotion altogether; he'd prefer to keep the officer, denying promotion, but would rather fire than promote him. C thinks the man ought to be fired but, in terms of personal policy and…arrow_forwardExercise 3.2 A three-man board, composed of A, B, and C, has held hearings on a personnel case involving an officer of the company. This officer was scheduled for promotion but, prior to final action on his promotion, he made a decision that cost the company a good deal of money. The question is whether he should be (1) promoted anyway, (2) denied the promotion, or (3) fired. The board has discussed the matter at length and is unable to reach unanimous agreement. In the course of the discussion it has become clear to all three of them that their separate opinions are as follows: • A considers the officer to have been a victim of bad luck, not bad judgment, and wants to go ahead and promote him but, failing that, would keep him rather than fire him. ⚫ B considers the mistake serious enough to bar promotion altogether; he'd prefer to keep the officer, denying promotion, but would rather fire than promote him. ⚫ C thinks the man ought to be fired but, in terms of personnel policy and…arrow_forward
- It is about travel method problem. You have been commissioned to estimate the demand curve for admission to EuroLand, an amusement park in France. To do this, you spend a day surveying visi tors to the park. Before doing this, you divide the area around the park into 10 zones with the distance from the park approximately constant within a zone. You ask each person you interview where they come from. Based on that information, and figures on annual attendance at the park, you are able to calculate the annual number of visitors from each zone. Your data are shown below: (table) Zone Distance from park (km) Zonal population Number of visitors 1 10 5,000 500 2 20 10,000 900 3 30 25,000 2,000 4 40 10,000 700 5 50 100,000 6,000 6 60 500,000 25,000 7 70 200,000 8,000 8 80 50,000 1,500 9 90 100,000 2,000 10 100 100,000 1,000 You note that admission to Euroland is 150 euros per person. you also calculate that transportation costs, including time costs, are…arrow_forwardOskxoclarrow_forwardAt the consulting agency, they recognize that water/wastewater customers fall under different segments. Each segment supports different characteristics that influence the services accessible to them and the price for these services. For simplification, these segments have been grouped into two categories: commercial and residential customers. Each segment has different rates. The commercial customers have a demand curve of d₁ = 3,500 - 125p₁. While residential customers have a demand curve of d2 = 8,000 - 50p2. The water/wastewater operation cost is c = $2 per unit or gallon. What is the total profit at differential pricing? $257,162 $296,537 $333,175 $344,325arrow_forward
- Demand for hand sanitizer is surging around the globe as the new coronavirus spreads, prompting retailers to ration supplies and online vendors to hike prices. Sales of hand sanitizers and similar products have swelled across several international markets since the COVID-19 outbreak began in January. The virus, which originated in China, has now spread to more than 60 countries. According to data published Tuesday by market research firm Kantar, U.K. hand sanitizer sales saw a year-on-year increase of 255% in February. Meanwhile, British shoppers were buying 7% more liquid hand soaps and spent 10% more on household cleaners compared to February 2019. (Source: CNBC, 3rd March 2020 ii. Due to high demand of hand sanitizer, it will lead to increases of price by producers. Based on your opinion, what should a government do to control the price of hand sanitizer to keep hike during the pandemic.arrow_forwardThe Camera Shop sells two popular models of digital SLR cameras. The sales of these products are not independent; if the price of one increases, the sales of the other increases. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and price (P) of each model. (a) Construct a model for the total revenue and implement it on a spreadsheet. What is the profit (in dollars) predicted by your model when the price of model A is PA = $260 and the price of model B is PB = $320. $ 81276 NA = 165 -0.7PA + 0.45PB NB = 322 +0.08PA - 0.6PB (b) Develop a two-way data table to estimate the optimal prices for each product in order to maximize the total revenue. Vary each price from $250 to $500 in increments of $10. 300 X PB =arrow_forwardOwkskdmdarrow_forward
- Three researchers are evaluating taste preferences among three leading brands of cola. After participants taste each brand, the first researcher simply checks to see if participants can distinguish them reliably by labeling each cola as "same" or "different" from the others, by giving them the same or different letter or number code. The second researcher asks each participant to identify the most preferred, the second most preferred, and the least preferred. The third researcher asks each participant to rate each of the colas on a 10-point scale, where a rating of 1 indicates “terrible taste” and 10 indicates “excellent taste," with the assumption that the difference betweeen a rating of 4 and 6 is the same as the difference between a 6 and 8. Identify the scale of measurement used by each researcher. nominal; ordinal; interval interval; ordinal; nominal nominal; interval; ordinal ordinal; interval; ratioarrow_forwardLast month you assumed the position of manager for a large car dealership. The distinguishing feature of this dealership is its “no hassle” pricing strategy; prices (usually well below the sticker price) are posted on the windows, and your sales staff has a reputation for not negotiating with customers. Last year, your company spent $2 million on advertisements to inform customers about its “no hassle” policy and had overall sales revenue of $40 million. A recent study from an agency on Madison Avenue indicates that, for each 3 percent increase in TV advertising expenditures, a car dealer can expect to sell 12 percent more cars—but that it would take a 4 percent decrease in price to generate the same 12 percent increase in units sold. Assuming the information from Madison Avenue is correct, should you increase or decrease your firm’s level of advertising? Explainarrow_forwardLdocplcoeodlxmxsarrow_forward