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Adios Junk Mail Assign

This document provides instructions for an individual assignment for a marketing pricing course. Students are asked to read a case study on a junk mail reduction service called Adios Junk Mail, analyze the demand at various price points using provided data, recommend a price based on their analysis, and suggest other ways to determine customer price sensitivity. They are to complete the assignment individually and submit written responses by a specified due date.

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Tiffany Zhong
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588 views

Adios Junk Mail Assign

This document provides instructions for an individual assignment for a marketing pricing course. Students are asked to read a case study on a junk mail reduction service called Adios Junk Mail, analyze the demand at various price points using provided data, recommend a price based on their analysis, and suggest other ways to determine customer price sensitivity. They are to complete the assignment individually and submit written responses by a specified due date.

Uploaded by

Tiffany Zhong
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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COMM 486 I Pricing Prof.

Srabana Dasgupta

INDIVIDUAL ASSIGNMENT #1 ADIOS JUNK MAIL Please read the Adios Junk Mail case and answer the following questions below. Handwritten analyses are acceptable. The case exercise is due at the beginning of class on Monday, September 19th. Please state clearly your computations and your assumptions, and keep a copy to refer during our discussion. Note: To answer the following questions, assume variable costs for each new customer are $10. For purposes of market sizing in 1997, you may assume a target market of 10,000 customers.
1. Use the data in the case (available as an Excel spreadsheet file on

Vista) to estimate the percentage of customers who will purchase the junk mail reduction service at various price points (e.g., $ 5 upto $60). What assumptions did you have to make?

2. Based on your analysis above and any other relevant factors, recommend the price that Adios Junk Mail should charge. Justify.

3. How else might Collins determine the price sensitivity of target customers?

Some hints: Use the histogram feature in Excel to do your analysis. Make sure that you do not account for the missing observations when you do your calculations.

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