Answer:
<h2>Mattel</h2>
a) Revenue outcomes from strategies:
Strategy 1 Strategy 2
Doll:
Low-Value Customers 36 6
High-Value Customers 36 6
Accessory
:
Low-Value Customers 36 66
High-Value Customers 72 132
Total Revenue $180 $210
b) The strategy that generates the most revenue is strategy 2.
Explanation:
a) Data and Calculations:
Types of Consumers:
Revenue from Low-value Customers = $72
Revenue from High-value Customers = $138
Strategy 1: Doll for $36 and each accessory for $36
Strategy 2: Doll for $6 and each accessory for $66
The high-value customers buy 2 accessories with 1 doll.
The low-value customers buy 1 accessory with 1 doll.
b) Revenue outcomes from strategies:
Strategy 1 Strategy 2
Doll:
Low-Value Customers 36 6
High-Value Customers 36 6
Accessory
:
Low-Value Customers 36 66
High-Value Customers 72 132
Total Revenue $180 $210
