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Segmentation

The document compares profit outcomes across different pricing strategies: one price point, two price points, and five price points. It presents data on buyers, economic value, units sold, variable costs, and total profits for each pricing strategy. The total profits increase with the number of price points, indicating a potential benefit of more pricing options.

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bernardhartman564
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12 views2 pages

Segmentation

The document compares profit outcomes across different pricing strategies: one price point, two price points, and five price points. It presents data on buyers, economic value, units sold, variable costs, and total profits for each pricing strategy. The total profits increase with the number of price points, indicating a potential benefit of more pricing options.

Uploaded by

bernardhartman564
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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One Price Point

Buyers A B C D E
Price 10
Economic Value 20 15 10 8 6
Units Sold 50 150 350 250 200
Variable Cost 5
Total Profit 250 750 1,750 - -

Two Price Points


A B C D E
Price 15 15 8 8 8
Economic Value 20 15 10 8 6
Units Sold 50 150 350 250 200
Variable Cost 5
Total Profit 500 1,500 1,050 750 -

Five Price Points


A B C D E
Price 20 15 10 8 6
Economic Value 20 15 10 8 6
Units Sold 50 150 350 250 200
Variable Cost 5
Total Profit 750 1,500 1,750 750 200
2,750

3,800

4,950

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