Reference no: EM133293293
Case: You have developed a self-study certification system for those who need credit hours for recertification by your state's social welfare office. The system operates at virtually no cost, i.e., there is no marginal cost. A marketing research team has assembled the following sales information.
You are researching the options for pricing the courses. Your goal is to achieve maximum revenue to establish funding to maintain and update the system to reflect annual policy changes in licensing requirements.
Question One
Complete the calculations for Total Revenue by determining how many customers will purchase at each of the segment prices.
Online Self Certifications for Social Work License
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Certification in Online Counseling
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Certification as a Group Home Counselor
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Bundle
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Customers
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TR Counseling
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TR Group Home
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TR Bundle
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Segment 1
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1000
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$190
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a
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$70
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e
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$260
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4a
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Segment 2
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1000
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$150
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b
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$90
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f
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$240
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4b
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Segment 3
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1000
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$95
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c
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$160
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g
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$255
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4c
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Segment 4
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1000
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$35
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d
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$195
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h
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$230
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4d
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Questions Two
Continuing with the Online Self Certification for Social Work License Table, complete the calculations for Total Revenue by determining how many customers will purchase at each of the segment's bundle price.
Question Three
Using the Online Self Study Certifications table, answer the following question:
At what individual price would the revenue be maximized for the Certification in Online Counseling? Explain/support your answer based on the calculations in question one.
Question Four
Using the Online Self Study Certifications table, answer the following question:
At what individual price would the revenue be maximized for the Certification as a Group Home Counselor? Explain/support your conclusion based on the calculations in question one.
Question Five
Using the Online Self Study Certifications table, answer the following question:
What is the maximum profit from individual pricing?
Question Six
Using the Online Self Study Certifications table, answer the following question:
If you employed pure bundling what would be the maximum total revenue? Explain/support your conclusion based on the calculations in question 3.