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    Optimal Pricing Strategy Choice

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    You own a franchise of rental car agencies in Florida. You recently read a report indicating that about 80 percent of all tourists visit Florida during the winter months in any given year, and that 60% of all tourists traveling to Florida by air rent automobiles. Travelers not planning ahead often have great difficutlty finding rental cars due to high demand. However, during nonwinter months tourism drops dramatically and travelers have no problem securing rental car reservations. Determne the optimal pricing strategy and explain why it is the best pricing strategy.

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    Solution Preview

    I would use a market-oriented pricing strategy. The price in this type of strategy is based upon research that has been conducted on the target market. In this case, we know that 60% out of ...

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