Typical Exam Question Imagine you are raising money for your sorority

Typical exam question imagine you are raising money

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“Typical Exam Question”Imagine you are raising money for your sorority / fraternityYou have created a calendar that has Columbia-related photographs that your sorority/ fraternity members took. You have two options facing you (see below)Which option brings in more profit? (A) A (B) B (C) need more info Option A: Sell a 12-page black-and-white calendar, a separate month on each page. You can sell between 100-200calendars. You will charge $10/ calendar. Your margin is 50% and your fixed cost (set-up fee) is $100Option B:Sell a 6-page color calendar, two months on each page. You will sell 100 calendars. You can charge between $20-30/ calendar. Your variable cost is $10/calendar and your fixed cost (set-up fee) is $200
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The data – another look Option A -least profit Option A -most profit Option B -least profit Option B -most profit Quantity 100 200 100 100 Price $10 $10 $20 $30 Variable Cost $5 $5 $10 $10 Fixed Cost $100 $100 $200 $200 Profit $400 $900 $800 $1800
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Solving the problem Option A: Least profit = $400 Most profit = $900 Option B: Least profit = $800 Most profit = $1800 Profit (Option A) >=< Profit (Option B) More info needed
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Breakeven analysis! Fit Deck Shark Tank Season 5 Week 15
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Plan for this week Segmentation-Targeting-Positioning (bit more detail) Break-even analysis Consumer Behavior
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The Consumer Decision Process Need Recognition Functional needs Psychological needs Royalty-Free/CORBIS ©Digital Vision/PunchStock
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The Consumer Decision Process Search for Information Courtesy of Refinery29.com.
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Factors Affecting Consumers’ Search Process (Perceived) Benefits (Perceived) Costs
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Actual or Perceived Risk
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The Consumer Decision Process Evaluation of Alternatives: Attribute Sets
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The Consumer Decision Process Evaluation of Alternatives: Consumer Decision Rules Cheerios 10 8 6 8 8.2 Post 8 9 8 3 7.1 Kashi 6 8 10 5 7.2 All photos: ©M. Hruby. Compensatory
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The Consumer Decision Process Evaluation of Alternatives: Consumer Decision Rules Cheerios 10 8 6 8 8.2 Post 8 9 8 3 7.1 Kashi 6 8 10 5 7.2 All photos: ©M. Hruby. Non-Compensatory
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