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MGMT 107 University of California Business Administration Analysis Questions

MGMT 107 University of California Business Administration Analysis Questions

Question Description

I’m working on a management writing question and need a sample draft to help me study.

Below is a table of average sale information that a local small grocery store has collected from 4pm to 6pm on every Friday.

Average Sales

  1. Use Market Basket Analysis (Support, Confidence, and Lift) to compare two
    • Case 1: Consumer who bought potato chips also bought milk
    • Case 2: Consumer who bought soda also bought milk
  2. What does the result in a) imply? Please interpret the results in a).
  3. Based on the results in a), suggest a strategy which the store owner could implement to increase sales of milk.

Question 2: (10 pts)

You are selling a software product called “Link” which is available in high and low-quality versions called Link Professional and Link Home respectively. You have 2 units of Link Professional and 2 units of Link Home.

There are 2 potential customers, each of whom is interested in buying 1 unit of Link (either Link Professional or Home but not both). Suppose that your objective is to maximize the total revenue from selling the software. Further, you do not know the identity of either buyer and you must sell by posting one price for Link Professional and another price for Link Home. Each buyer seeks to maximize her consumer surplus and may buy Link Professional or Link Home or neither depending on the prices that you post. Please show all the intermediate steps and clearly explain your reasoning.

  1. What is the optimal price and resulting revenue under the following scenario? What (if anything) would each customer buy?
  2. If you could identify each buyer and make targeted offers, what price would you offer to each and how much revenue would you earn? What (if anything) would each customer buy?

Scenario The willingness to pay (WTP) of the 2 potential buyers is:

WTP of Potential Buyer

Question 3: (10 pts)

Read part of 2013 Macworld article about “The App Store turns five: A look back and forward (Links to an external site.)” to answer the following questions. Download Individual Assignment #2 Questions to see the article summary.

  1. Does Appstore provide a two-sided platform.? If yes, are there the same side and cross-side network effects? Please
  2. Does Appstore operate in a market that exhibits “winner take all” dynamics?

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