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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 $850.  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: What price should the manufacturer charge for each type camera to maximize profit selling both products in this market?

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?