A hotel booking website, VrBooking, is showing consumers a b…

A hotel booking website, VrBooking, is showing consumers a base price on the first screen, and only adds resort fees and taxes at the check-out page. It runs an A/B test and finds an additional 1% increase in the base room price reduces bookings by 2% and that an equivalent increase in resort fees reduces bookings by 1.5%. Discuss what might happen to demand in the short-run and long-run if VrBooking decides to add a dollar to the base price and reduce a dollar from the fees.

You analyze an elbow plot of a k-cluster analysis based on p…

You analyze an elbow plot of a k-cluster analysis based on part-worths from a conjoint. You come to the conclusion that there are 3 distinct clusters. You can only target one cluster. True/False: In that case, you should target the cluster that has the highest WTP (i.e. people in that cluster are willing to pay the most for your product).