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    type of strategy

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    The reservation prices of three classes of demanders of Cable Channels Bravo and Disney are given below:

    Class Bravo Disney
    30 Year Old Adults $11 $5
    12 to 15 year olds $ 8 $9
    3 to 7 year olds $ 9 $10

    It cost $4 to produce and distribute each Channel. The cable company can sell each separately, sell them as a bundle, or both.

    a. What pricing strategy would you recommend?
    b. How much more profitable is the best strategy compared to the next best?.

    © BrainMass Inc. brainmass.com October 9, 2019, 11:44 pm ad1c9bdddf
    https://brainmass.com/economics/finance/reservation-prices-266192

    Solution Preview

    Hi,

    Here is the answer:

    Answer:

    (a) There are two type of strategy that can be adopted. The first strategy is to sell the cable channels in a bundle to every one at a price of $16 ...

    Solution Summary

    The types of strategy are assessed.

    $2.19