If demand for rental cars in Orlando were constant throughout
If demand for rental cars in Orlando were constant throughout the year, how could the quantities listed in the column “Market Demand” (in the Market Demand tab of the simulation) increase every month? Note: Answer does not depend on Scenario.
How can you remove movements along the demand curve
How can you remove movements along the demand curve so that you can see month-to-month shifts in the demand curve, November through September (the period for which you want to maximize profits)? Explain the process and show the results in the form of a spreadsheet. Using Scenario C, replicate the Seasonality spreadsheet template using prices of $36.50 (weekday) and $31.10 (weekend) for every month (Nov-Sep). If you find seasonal variation in demand, use your knowledge of Orlando as a vacation and business conference destination to explain the variation. Make specific reference to the numbers in your version of the Seasonality spreadsheet and include it with your exam.
What data do you need to accurately estimate a company
What data do you need to accurately estimate a company’s price elasticity of demand? What are the challenges of collecting such data for a business?
What data do you need to accurately estimate a company
What data do you need to accurately estimate a company’s price elasticity of demand? What are the challenges of collecting such data for a business?
Within a given Scenario the pricing simulation gives
Within a given Scenario, the pricing simulation gives the same results every run. That is, if you input the same set of monthly prices on runs 1,2,3, etc., all the metrics (orders, capacity utilization, revenues, profits, etc.) will be identical from run to run. How can you use this knowledge to estimate Universal’s price elasticity of demand regardless of monthly changes in demand and in the competitor’s price? Demonstrate your method by calculating weekday price elasticity in Nov at a price of $50 (mid-point), using any Scenario (clearly indicate which one you use). Show your work.
What can a company do to reduce the price elasticity
What can a company do to reduce the price elasticity of the goods it sells?
In the pricing simulation, why do elasticities differ between weekday
In the pricing simulation, why do elasticities differ between weekdays and weekends when measured at the same price? Note: Answer does not depend on Scenario.
If you want to test a range of prices to find the one that maximizes
If you want to test a range of prices to find the one that maximizes contribution margin, what is the lowest price you need to test? Why? Note: Answer does not depend on Scenario.
Why would you consider testing prices in the elastic range
Why would you consider testing prices in the elastic range when you know that revenues will decrease if you increase prices in that range? Note: Answer does not depend on Scenario.
Using Scenario C data for November explain your process
Using Scenario C data for November, explain your process for finding the price that maximizes contribution margin. How do you know that you have found the price that maximizes contribution margin? (i.e., that no lower or higher price would produce a greater contribution margin). Show your data in a spreadsheet (use the spreadsheet template Finding Optimal Price Using Contribution Margin located in Course Resources) and explain each column of the spreadsheet.
Define indirect price discrimination
Define indirect price discrimination. Explain how it differs from direct price discrimination. Explain the key assumptions for indirect price discrimination to work. Explain how charging a different price on weekdays vs weekends is an example of indirect price discrimination. Note: Answer does not depend on Scenario.
Despite the term discrimination price discrimination
Despite the term “discrimination”, which generally carries a negative connotation, all customers benefit from indirect price discrimination. Explain the benefits to both leisure and business renters. Note: Answer does not depend on Scenario.
Despite the term discrimination price discrimination
Despite the term “discrimination”, which generally carries a negative connotation, all customers benefit from indirect price discrimination. Explain the benefits to both leisure and business renters. Note: Answer does not depend on Scenario.
Under what circumstances would Universal have unfilled orders
Under what circumstances would Universal have unfilled orders? Prove that unfilled orders always mean that you have not maximized profits. Note: concept doesn’t depend on Scenario, but numbers do. Use any Scenario that produces this phenomenon; indicate Scenario and inputs that produced the result.
Using Scenario C if you were being measured solely
Using Scenario C, if you were being measured solely by January’s results, what fleet size would you choose for January? Why? What price would you charge?