Answered

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A satellite radio company is the sole supplier of a brand-new service providing commercial-free music that competes with existing free, broadcast-radio music delivered via antennas. The service is automatically activated for a 6-month introductory free-trial period, and is only available to people who purchase a new car with a specially equipped receiver. After the trial period, customers must call the company to activate and retain the service. Match each customer below to the radio company’s best profit-maximizing price strategy.

a. Ricardo explains that he is indifferent to the new service, and has not yet sampled many of the stations.
b. Joe, who explains that he needs music to sing along with while he commutes two hours each day for work.
c. Natasha, who says that she likes the service, but who commutes less than a half hour each day for work.

1. high price
2. medium price
3. low price

Sagot :

The answer to your question is 1. high price
Parrain

The company's best profit-maximizing price strategy based on the views of their customers is:

  • Ricardo - Low price.
  • Joe - High price.
  • Natasha - Medium price.

What is the company's best profit-maximizing price strategy?

The company should charge more to customers that use the service a lot. This is why Joe should be charged the highest price.

Natasha would like to use the commercial music service more but she doesn't commute to work much so a medium price would be good.

Ricardo is indifferent and hasn't used the service much and so should get the lowest price.

Find out more on profit-maximization at https://brainly.com/question/15969466.

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