Priced so low A great Getting So expensive Frequency

that you buy for the expensive so that you

would feel the money? that it would not
quality is not out of the consider
couldn’t be question, buying it?
very good? but you would
have to give
some thought
to buying it?

2 5 10 11 1
2 6 12 17 2
3 5 10 20 3
4 8 12 20 4
3 5 15 18 5
5 8 14 18 6
1 9 13 15 7
9 11 15 25 8
1 5 8 25 9
4 5 7 8 10
4 11 15 25 11
6 8 14 18 12
2 5 10 18 13
5 8 15 25 14
3 7 12 20 15
3 5 12 18 16
2 7 10 15 17
3 5 10 12 18
4 8 13 17 19
4 8 16 22 20
4 8 15 21 21
22
23
Van Westendorp Ticket Price 24
25
1.2

0.8

0.6
IPP
0.4

0.2

PMC
 0.6

0.4

0.2

PMC PME
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Too Cheap CheapOPP Expensive Too Expensive

Too Cheap Cheap Expensive Too Expensive

Price Assume Revenue

Attendance
grows by 5%
for each $ 0.50
reduction in
price

PMC = 7 12 150.00 1800.00 Price

PME = 11 11.5 157.50 1811.25 12
IPP = 9 11 165.38 1819.13 11.5
OPP = [8-9] 10.5 173.64 1823.26 11
10 182.33 1823.26 10.5
9.5 191.44 1818.70 10
9 201.01 1809.13 9.5
8.5 211.07 1794.05 9
8 221.62 1772.95 8.5
7.5 232.70 1745.24 8
7 244.33 1710.34 7.5
Too Cheap Cheap Expensive Too Percentage Too Cheap Expensive
Expensiv Cheap
e

2 0 0 0 1 100.00% 100.00% 0.00%

4 0 0 0 2 90.48% 100.00% 0.00%
5 0 0 0 3 71.43% 100.00% 0.00%
6 0 0 0 4 47.62% 100.00% 0.00%
2 8 0 0 5 19.05% 100.00% 0.00%
1 1 0 0 6 9.52% 61.90% 0.00%
0 2 1 0 7 4.76% 57.14% 4.76%
0 7 1 1 8 4.76% 47.62% 9.52%
1 1 0 0 9 4.76% 14.29% 9.52%
0 0 5 0 10 0.00% 9.52% 33.33%
0 2 0 1 11 0.00% 9.52% 33.33%
0 0 4 1 12 0.00% 0.00% 52.38%
0 0 2 0 13 0.00% 0.00% 61.90%
0 0 2 0 14 0.00% 0.00% 71.43%
0 0 5 2 15 0.00% 0.00% 95.24%
0 0 1 0 16 0.00% 0.00% 100.00%
0 0 0 2 17 0.00% 0.00% 100.00%
0 0 0 5 18 0.00% 0.00% 100.00%
0 0 0 0 19 0.00% 0.00% 100.00%
0 0 0 3 20 0.00% 0.00% 100.00%
0 0 0 1 21 0.00% 0.00% 100.00%
0 0 0 1 22 0.00% 0.00% 100.00%
0 0 0 0 23 0.00% 0.00% 100.00%
0 0 0 0 24 0.00% 0.00% 100.00%
0 0 0 4 25 0.00% 0.00% 100.00%
Attendance Revenue
150 1800.00
158 1811.25
165 1819.13
174 1823.26 Optimal
182 1823.26
191 1818.70
201 1809.13
211 1794.05
222 1772.95
233 1745.24
Too
Expensive

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
4.76%
4.76%
4.76%
9.52%
14.29%
14.29%
14.29%
23.81%
23.81%
33.33%
57.14%
57.14%
71.43%
76.19%
80.95%
80.95%
80.95%
100.00%
 Frequency Too Cheap
Cheap
Too Cheap Cheap Expensive Too Expensive
1 3 5 7 0 1 0
1 2 8 10 1 10 1
0 1 2 5 2 6 2
1 2 4 6 3 3 8
1 3 7 9 4 0 5
2 4 7 10 5 1 4
3 5 7 10 6 0 0
5 7 12 15 7 0 1
1 4 10 15 8 0 0
3 5 9 14 9 0 0
2 4 8 10 10 0 0
3 5 8 12 11 0 0
1 3 6 10 12 0 0
1 3 8 10 13 0 0
2 4 5 8 14 0 0
1 3 6 10 15 0 0
2 5 7 10

1 3 5 7 Van Westendorp Analysis for Popcorn

1 3 5 8 120.00%
2 3 7 9
2 4 8 13 100.00%

We don't need to be 80.00%

PMC = 3-4
terribly accurate while
PME = 11 determining PMC or 60.00%
IPP = 5-6 PME since all we need
OPP = 5 is the range
40.00%

20.00%

0.00%
0 1 2 3 4 5 6 7 8 9 10 11 1

Too Cheap Cheap Expensive Too E

 Expensive Too Percentag Too Cheap Expensive Too
Expensive e Cheap Expensive

0 0 0 100.00% 100.00% 0.00% 0.00%

0 0 1 95.24% 100.00% 0.00% 0.00%
1 0 2 47.62% 95.24% 4.76% 0.00%
0 0 3 19.05% 85.71% 4.76% 0.00%
1 0 4 4.76% 47.62% 9.52% 0.00%
4 1 5 4.76% 23.81% 28.57% 4.76%
2 1 6 0.00% 4.76% 38.10% 9.52%
5 2 7 0.00% 4.76% 61.90% 19.05%
5 2 8 0.00% 0.00% 85.71% 28.57%
1 2 9 0.00% 0.00% 90.48% 38.10%
1 8 10 0.00% 0.00% 95.24% 76.19%
0 0 11 0.00% 0.00% 95.24% 76.19%
1 1 12 0.00% 0.00% 100.00% 80.95%
0 1 13 0.00% 0.00% 100.00% 85.71%
0 1 14 0.00% 0.00% 100.00% 90.48%
0 2 15 0.00% 0.00% 100.00% 100.00%

Price Popcorn Revenue

ndorp Analysis for Popcorn Purchase
4.5 100.0 450
5 100.0 500
5.5 100.0 550 Optimal
3.5 150.0 525
4 125.0 500

5 6 7 8 9 10 11 12 13 14 15

Cheap Expensive Too Expensive

 Preference Medium Large Some movies Popular Plaza
movies only

1 6.52 0 0 0 0 0
2 7.67 1 0 0 0 0
3 8.1 0 1 0 0 0
4 4.95 0 0 1 0 0
5 5.19 1 0 1 0 0
6 6.14 0 1 1 0 0
7 5.48 0 0 0 1 0
8 6.67 1 0 0 1 0
9 6.9 0 1 0 1 0
10 6.14 0 0 0 0 0
11 6.86 1 0 0 0 0
12 7.81 0 1 0 0 0
13 3.71 0 0 1 0 0
14 5.43 1 0 1 0 0
15 5.33 0 1 1 0 0
16 4.48 0 0 0 1 0
17 5.81 1 0 0 1 0
18 6.76 0 1 0 1 0
19 5.76 0 0 0 0 1
20 7.14 1 0 0 0 1
21 7.9 0 1 0 0 1
22 4.67 0 0 1 0 1
23 5.9 1 0 1 0 1
24 5.67 0 1 1 0 1
25 4.38 0 0 0 1 1
26 5.95 1 0 0 1 1
27 6.62 0 1 0 1 1

Profiles Preference Attribute

Share

1 3.98% Small
2 4.68% Medium
3 4.94% Large
4 3.02% All Movies
5 3.17% Some movies
6 3.75% Popular
3.34% movies
Mall only
7
8 4.07% Plaza
9 4.21% Standalone
10 3.75%
11 4.18%
12 4.76%
13 2.26%
14 3.31%
15 3.25%
16 2.73%
17 3.54%
18 4.12%
19 3.51%
20 4.36%
21 4.82%
22 2.85%
23 3.60%
24 3.46%
25 2.67%
26 3.63%
27 4.04%
Standalone EXP(Utility) Preference
Share
SUMMARY OUTPUT
0 678.57838534 3.26%
0 2143.0814452 10.30% Regression Statistics
0 3294.4680753 15.83% Multiple R 0.96720298
0 141.17496392 0.68% R Square 0.93548161
0 179.46855293 0.86% Adjusted R S 0.91612609
0 464.05357086 2.23% Standard Erro0.32864424
0 239.84670737 1.15% Observations 27
0 788.39560446 3.79%
0 992.27471561 4.77% ANOVA
1 464.05357086 2.23% df SS MS
1 953.36706749 4.58% Regression 6 31.32087 5.22014444
1 2465.1304353 11.84% Residual 20 2.160141 0.10800704
1 40.853806527 0.20% Total 26 33.48101
1 228.14924542 1.10%
1 206.43797416 0.99% CoefficientsStandard Error t Stat
1 88.234672676 0.42% Intercept 6.47962963 0.167337 38.7219321
1 333.61912567 1.60% Medium 1.17 0.154924 7.55207149
1 862.64219579 4.14% Large 1.68222222 0.154924 10.858344
0 317.34832892 1.52% Some movies -1.8788889 0.154924 -12.1277805
0 1261.4283891 6.06% Popular movi -1.2055556 0.154924 -7.78157414
0 2697.2823283 12.96% Plaza -0.4033333 0.154924 -2.60342066
0 106.69774243 0.51% Standalone -0.5877778 0.154924 -3.79396564
0 365.03746787 1.75%
0 290.03453439 1.39%
0 79.838033405 0.38%
0 383.75333906 1.84%
0 749.94509711 3.60%

Part-worth
Attribute Range Importance
0 Size 1.68222222 40.55%
1.17 Movie Type 1.87888889 45.29%
1.6822222222 Location 0.58777778 14.17%
0
-1.878888889
-1.205555556
0
-0.403333333
-0.587777778
 F Significance F
48.33152 7.31E-11

P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%

2.768E-20 6.13057 6.828689 6.13057 6.828689
2.806E-07 0.846833 1.493167 0.846833 1.493167
7.785E-10 1.359056 2.005389 1.359056 2.005389
1.127E-10 -2.202055 -1.555722 -2.202055 -1.555722
1.783E-07 -1.528722 -0.882389 -1.528722 -0.882389
0.017001 -0.7265 -0.080167 -0.7265 -0.080167
0.001138 -0.910944 -0.264611 -0.910944 -0.264611
 Totals Monthly Daily
-2666.66666667 Rent 80000 2666.66666667

Old customers
60% Tickets 174
Move to mall 1406.2 Old Customers Popcorn 174

Daily Revenue
756.61666667 40% Tickets 174
Popcorn 174

New customers
85% Tickets 125
2017.083333333 New Customers Popcorn 125

15% Tickets 75
Popcorn 75

Totals Monthly Daily

-2166.66666667 Rent 65000 2166.66666667

Old customers
60% Tickets 174
Move to plaza 1755 Old Customers Popcorn 174
Daily Revenue
725.83333333 40% Tickets 174
Popcorn 174

New customers
50% Tickets 50
1137.5 New Customers Popcorn 50

50% Tickets 100

 Popcorn 100

Totals Monthly Daily

-1666.66666667 Rent 50000 1666.66666667

Customers
Tickets 174
Stay Put 2465 Customers Popcorn 174
Daily Revenue
798.33333333
Popcorn demand Minutes away Customer loss Price Premium Revenue
n/a 16 12 10.5 3 1053
0.6666666666667 16 12 5.5 0 110

n/a 16 8 10.5 3 1485

0.6666666666667 16 8 5.5 0 286

Popcorn demand Minutes away Customer loss Price Premium Revenue

n/a 10.5 3 1687.5
0.6666666666667 5.5 0 458.3333333

n/a 10.5 3 1012.5

0.6666666666667 5.5 0 275

Popcorn demand Minutes away Customer loss Price Premium Revenue

n/a 10 12 10.5 1 1311
0.6666666666667 10 12 5.5 0 308

n/a 10 8 10.5 1 1541

0.6666666666667 10 8 5.5 0 418

Popcorn demand Minutes away Customer loss Price Premium Revenue

n/a 10.5 1 575
0.6666666666667 5.5 0 183.3333333

n/a 10.5 1 1150

0.6666666666667 5.5 0 366.6666667

Popcorn demand Minutes away Customer loss Price Premium Revenue

n/a 10.5 0 1827
0.6666666666667 5.5 0 638
Bonus ($) Sales Quota ($ 000s)Utility Model Fit
10000 1200 27 36.51231
10000 1300 21 33.33327
10000 1400 17 30.15423 SUMMARY OUTPUT
10000 1500 14 26.97519
10000 1600 9 23.79615 Regression Statistics
10000 1800 5 17.43806 Multiple R
10000 2000 0 11.07998 R Square
12000 1200 50 43.43551 Adjusted R Square
12000 1300 43 40.25647 Standard Error
12000 1400 39 37.07743 Observations
12000 1500 36 33.89838
12000 1600 32 30.71934 ANOVA
12000 1800 28 24.36126
12000 2000 23 18.00318 Regression
15000 1200 60 53.82031 Residual
15000 1300 55 50.64126 Total
15000 1400 51 47.46222
15000 1500 47 44.28318
15000 1600 43 41.10414 Intercept
15000 1800 38 34.74606 Bonus
15000 2000 34 28.38797 Sales Quota
20000 1200 87 71.1283
20000 1300 80 67.94926
20000 1400 76 64.77022
20000 1500 74 61.59117
20000 1600 69 58.41213
20000 1800 65 52.05405
20000 2000 60 45.69597 Regression coefficients
30000 1200 100 105.7443 Constant
30000 1300 95 102.5652 a1
30000 1400 90 99.3862 a2
30000 1500 88 96.20716 a3
30000 1600 82 93.02812
30000 1800 80 86.67004
30000 2000 75 80.31195
RY OUTPUT

Regression Statistics
0.944111076
0.8913457239
0.8845548317
9.525067066
35

df SS MS F
2 23816.91 11908.4552725 131.25605448609
32 2903.261 90.7269026113
34 26720.17

CoefficientsStandard Error t Stat P-value

40.044828525 10.41603 3.84453721173 0.0005409326320178
0.0034615987 0.000225 15.3602412798 2.54536878286704E-16
-0.0317904192 0.006167 -5.155103956 1.26564073746896E-05

gression coefficients Problem A - Utility Function

Constant Value
40.0448 Utility Function a1+a2*Bonus+a3*Sales Quot
0.0035
-0.0318 Problem B - Priya's current Utility

Current Utility 38.3843907795694

Problem C - Bonus level & Sales Quota for Profit Maximisation

Bonus 11000
Sales Quota 1250000
Current Utility 38.3843907795694
Profit 39000
 Significance F
3.77354177726859E-16

Lower 95% Upper 95%Lower 95.0%

Upper 95.0%
18.8280625102777 61.26159 18.82806 61.26159
0.00300255348897192 0.003921 0.003003 0.003921
-0.044351749708229 -0.019229 -0.044352 -0.019229

blem A - Utility Function

40.0448+.0035*Bonus-0.0318*Sales Quota

m B - Priya's current Utility

vel & Sales Quota for Profit Maximisation

38.38439