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Case 2:  Suppose Samsung prices the Galaxy S24Max smartphone at $1230.  The per unit margin/markup is $580.  Also suppose that Samsung has discovered that of the consumers that consider but do not purchase the Galaxy S24Max, 30% are likely to purchase the cheaper Galaxy S24 (with a per-unit margin of $300).  Samsung is considering a 5% price increase for the Galaxy S24Max .   Q:  What is the stay even quantity change (in %) if only the sales of the S24Max are considered?    

Case 2:  Suppose Samsung prices the Galaxy S24Max smartphone at $1230.  The per unit margin/markup is $580.  Also suppose that Samsung has discovered that of the consumers that consider but do not purchase the Galaxy S24Max, 30% are likely to purchase the cheaper Galaxy S24 (with a per-unit margin of $300).  Samsung is considering a 5% price increase for the Galaxy S24Max .   Q:  Using what you know about the percentage of consumers that consider the S24Max and the S24, what is the adjusted %markup for calculating the true stay-even quantity for the Galaxy S24Max?

Suppose that you are promoted to be the manager over a product line.  You know that pricing and product features are chosen optimally using value-based analysis, but these decisions are currently made independently for each product in the line.  Research shows that product A and product B in the line tend to be purchased together by consumers.  What does this indicate about the optimal prices of product A and product B?

What role do fixed costs play in the value-based pricing thermometer?

If a pricing manager is stupid enough to engage in price collusion with a competitor, which of the following will be used to send this person to prison?

Case 1:  Suppose that a camera manufacturer has two potential products The XD-Pro camera costing $450 to manufacture A XD-S camera also costing $450 to manufacture Professional photographers value the XD-Pro at $1150 while amateur photographers value the XD-Pro at $900.  Professional photographers value the XD-S camera at $850 while amateur photographers value the XD-S at $700.  Suppose that the firm expects 1000 professionals and 1000 amateurs in the market for these cameras.   Q: Which of the following is true about this case?

Case 3:   Suppose that your firm has designed a way to test a new pricing structure.  A total of 100 retail locations were randomly divided into two groups.  Sales were measured for all locations for a week.  Then, all of the retail locations in the first group adopted the new pricing structure.  Finally, sales were measured again for all locations.   Q: During the course of the above, a competitor changed there pricing.  Which of the following is true?

Suppose that a consumer believes that an Ipad is worth $450 and an Apple Pen is worth $90. The Apple Store is willing to sell both at a price of $500.   As consumers see surplus as a gain, which of the following combinations of prices totaling $500 is likely to generate the greatest consumer satisfaction?

Suppose a pricing manager charges different prices for the same product depending on the distributor to which they sell.  Which of the following should the manager be concerned about?

Which of the following would not be advisable as a method to measure WTP?