You need to buy a new cell phone now and are trying to minimize your cell phone costs for the next 5 years. A new cell phone cos
ts C dollars and lasts for at most 3 years. The estimated maintenance cost for a phone depends on its age; if a phone is in its ith year of life, the cost will be M_i dollars, i = 1, 2, 3. Assuming cell phones have no salvage value and that you have the option each year of buying a new phone (for C dollars), formulate a network model that will minimize your costs over the next 5 years.
Successful pricing considers consumers' perceived value, because to ignore this might result in a price that is too high or too low. Marketers should view pricing decisions as a strategic opportunity to create value rather than as an afterthought to the rest of the marketing mix
