1. Assuming Virgin Mobile's target segment (14-24-year-olds), how should it structure its pricing?

3. Case help (This summarises what you should do for each pricing calculation) Status-quo pricing - Current pricing practice. Traditional pricing suggested by Matzer Competitor pricing - Use competitor price as a reference. Match competitor (Ontario Zink) price. Cost-plus pricing - Consider variable cost and fixed costs per unit (total fixed cost divided by expected unit sales). In this case, there is useful information to be used. Unit sales for the basic segment (and its projection). Atlantic's share of the basic segment will give the total unit sales figure for Atlantic. Note that only 50% of units will have PESA. No variable costs involved (simple installation) Total Fixed cost: R&D cost. Markup (%) = 30% Combining the above information, you should be able to compute how much the bundle should cost. Value-in-use pricing - Compute savings, i.e., economic value, achieved by purchasing Atlantic Tronn + PESA instead of Ontario Zink. Less number of servers (2 Tronn servers versus 4 Ontario Zink) Less labour for each server (each labour can manage 40 servers) Less electricity Less additional software application licenses. Total savings are equal to the maximum value of PESA 50-50 value sharing between Atlantic and customers. So, the final pricing of PESA equals 50% of the maximum economic value of PESA. This is the additional value- added to hardware. Answer the following questions What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle (i.e., Tronn servers+PESA software tool)? Think broadly about the top-line revenue implications from each of the four alternative pricing strategies. Approximately how much money over the next three years will be "left on the table" if the firm were to give away the software tool for free (i.e., status quo pricing) versus utilizing one of the other pricing approaches? How is Matzer likely to react to your recommendations? How is Cadena's sales force likely to react to your recommendation? What can Jowers recommend to get Cadena's hardware-oriented sales force to understand and sell the value of the PESA software effectively? How are customers in the firm's target market likely to react to your recommended pricing strategy? What response can be provided to overcome any objections?/n1. Atlantic Computer: A Bundle of Pricing Options 2078-PDF-ENG https://hbsp.harvard.edu/tu/621b1cbe Atlantic Computer: A Bundle of Pricing Options, Student Spreadsheet 920567-XLS- ENG https://hbsp.harvard.edu/tu/028cffd5 Exhibit 3 of this spreadsheet has Tronn server's cost as $1,358, but you should use $1,538 presented in the case. 2. Case discussion questions (Answer these in your case write-up report) The purpose of the Atlantic Computer case is to introduce students to the following commonly used approaches to determining price: (a) status-quo pricing, (b) comparative framing (or competition-based) pricing, (c) cost-plus pricing, and (d) value-based pricing. You are also asked to consider the reactions of competitors, customers, and internal stakeholders (e.g., salespeople) to different pricing approaches. After working on this case, you should have a firm grasp of basic pricing approaches and an appreciation for the many moving parts to be considered when setting price for a new product. Answer the following questions What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle (i.e., Tronn servers+PESA software tool)? Think broadly about the top-line revenue implications from each of the four alternative pricing strategies. Approximately how much money over the next three years will be "left on the table" if the firm were to give away the software tool for free (i.e., status quo pricing) versus utilizing one of the other pricing approaches? How is Matzer likely to react to your recommendations? How is Cadena's sales force likely to react to your recommendation? What can Jowers recommend to get Cadena's hardware-oriented sales force to understand and sell the value of the PESA software effectively? How are customers in the firm's target market likely to react to your recommended pricing strategy? What response can be provided to overcome any objections? How is Ontario Zink's senior management team likely to react to the Atlantic bundle?

1. Assuming Virgin Mobile's target segment (14-24-year-olds), how should it structure its pricing? Which of the suggested options would you recommend? In proposing your pricing plan, please be as specific as possible with respect to various elements contracts, size of the subsidies, hidden fees, average per-minute charges, etc. (It is important to carry out and describe the necessary calculations to examine the impact of each one of this elements).

In this module, you have learned how Customer Lifetime Value (CLV) is computed and how you can use this tool for pricing for a new (subscription) product. Please answer the following questions by summarising what you have learned from Module 3. Your summary should be concise and succinct to the points. Your entire summary note should not exceed 600 words (about single spaced 1-page ength with font size 11). Please note that your assessor won't read your writings over word limits. You do not necessarily repeat questions but use separate paragraphs for each question. Simple copy of lecture notes or google search will not give you good marks. Please understand topics thoroughly before you start writing your summary note. • If Atlantic computer decided to go for the value- based pricing, why do you think they should do it? • What are the managerial implications of acquisition pricing on marketing in terms of relationship perspective? • What is CLV and how can you use it in pricing? (Please explain CLV without formula).

3. The cellular industry is notorious for high customer dissatisfaction. Despite the existence of service contracts, the big carriers roughly churn 24% of their customers each year (2% per month). Clearly, there is little loyalty in this market. What is the source of this dissatisfaction? What role do pricing variables play in affecting the consumer experience? Why haven't the big carriers responded more aggressively to customer dissatisfaction?

Question 1 of 2 View Policies Show Attempt History Current Attempt in Progress Please view the following video before answering this question. Excel Video Lesson: FV Financial Function Click here to access the TVM Factor Table Calculator Part a < Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $16,500 per year. An emission reduction filter will cost $95,000 and have an expected life of 5 years, Carlisle's MARR is 10%/year. Your answer is incorrect. What is the future worth of this investment? $ Solution Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is $10. eTextbook and Media. Save for Later Q Search 0/3 E Part b The parts of this question must be completed in order. This part will be available when you complete the part above. Assistance Used Part c The parts of this question must be completed in order. This part will be available when you complete the part above. ARA Attempts: 2 of 3 used Submit Answer

The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel's uses a 4- year planning horizon and a 10% per year MARR Part a What is the annual worth of each investment? Vendor A: S Vendor B. S Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 25. eTextbook and Media Save for Later Part b The parts of this quest Attempts: 0 of 3 used Submit Answer

6. Do you agree with Virgin Mobile's target segment selection? What are the risks associated with targeting this segment? Why have the major carriers been slow to target this segment?

iew Policies Current Attempt in Progress Please view the following video before answering this question. Video Example 5.6 Click hereto access the TVM Factor Table Calculator Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 10%/year. EOY A001 B002 C003 Part a What is the future worth of each alternative? A001: $ B002: $ C003: $ 0 -$210 -$110 -$160 $80 $60 $80 $90 $60 $80 $100 $60 $80 $110 $70 $80 Save for Later 1 2 3 4 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 14. eTextbook and Media Attempts: 0 of 3 used -/2 E Submit Answer ***

2. Please provide evidence of the financial viability of your suggested pricing strategy. (Hint: You will need to conduct quantitative analysis using available case information to do this. Using the customer lifetime value lecture and workshop might be particularly useful to answer this, as well as the next question).

7. How has pricing strategy in the cell phone industry changed since the time of this case (2006)? Specifically, analyze the current pricing strategy of Australian mobile phone companies. Which aspects are similar and which aspects are different from the Virgin Mobile approach?