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Hyrule Cinemas Pricing Analysis Assignment

This assignment asks students to use the van Westendorp method and conjoint analysis to analyze pricing strategies for tickets and popcorn at Hyrule Cinemas. Students are provided a case study and must: 1) Determine price points and an acceptable price range for tickets and popcorn using van Westendorp analysis. 2) Estimate utilities and importance of attributes from a conjoint analysis table to calculate preference shares. 3) Calculate how much ticket prices could increase if the cinema moved to different locations, and estimate the expected revenue. Students must show their work and can collaborate within their group.

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Rohan Lunawat
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33 views1 page

Hyrule Cinemas Pricing Analysis Assignment

This assignment asks students to use the van Westendorp method and conjoint analysis to analyze pricing strategies for tickets and popcorn at Hyrule Cinemas. Students are provided a case study and must: 1) Determine price points and an acceptable price range for tickets and popcorn using van Westendorp analysis. 2) Estimate utilities and importance of attributes from a conjoint analysis table to calculate preference shares. 3) Calculate how much ticket prices could increase if the cinema moved to different locations, and estimate the expected revenue. Students must show their work and can collaborate within their group.

Uploaded by

Rohan Lunawat
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Revenue Pricing & Analytics – IIM Udaipur – 2021

Assignment 3
Due: 7 Aug 2021 Max Marks: 10

This assignment will give you further opportunity to explore what you have been taught about van
Westendorp method and conjoint analysis in class.

The problem data & background is based on the Hyrule Cinemas Pricing case. (Reference - HYRULE
CINEMAS: PRICING MOVIES AND POPCORN - Ivey Publishing – W14214 – prepared by Robert
Cianfarani under the supervision of [Link] A. Begen).

Please read the Hyrule Cinemas Pricing Case and answer the following questions.

 Use Van Westendorp analysis to:


 Determine the Indifference Price Point, Optimal Price Point, Point of Marginal
Cheapness, Point of Marginal Expensiveness and Acceptable Price Range for tickets
and popcorns.
 How would you use these and the information provided regarding price elasticity
determine the prices at which cinema tickets and popcorn may be sold?

 The Conjoint Analysis Table provides the average rating for each profile. Use this to:

 Estimate the utility (part-worth) of each attribute

 Determine the importance of each attribute.

 What is the preference share of each profile if you use the logit simulation method?

 You are told that the utility of the attribute price is 0.7. Assume (i) that this refers to the
ticket price & (ii) that the utility varies linearly and decreases from 0.7 to 0 as the price
increases from low to high within the acceptable price range determined in 1(a). By how
much could Hyrule increase the ticket price if it moved to (i) the mall (ii) the plaza without
changing the total utility.

 What would Hyrule’s expected revenue be if it moves to (i) the mall (ii) the plaza. Should it
move to either location?

Your answer must be analytically derived. Answer by guesswork 0 marks.

All working must be shown. No working 0 marks.

You can – and must – collaborate with other members of your group. However, collaboration
between groups is strictly prohibited. Suspiciously similar answers will be turned over to the
authorities for appropriate action.

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