Case_In_Point_7th_Edition_Page001_183_2

– Can be used for thinning hair as well.
j re tmere any side eA Aen osQ
– Yes. It causes sexual dysfunction in 2% of men, and women thinking of having children shouldn’t
take it because it could cause birth defects.
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anp k wngerL i altm w gm i U realize tmat tmere is a st all r w ratimn f mA b wen t wm w give uirtm aA oer
Y : l ) et.s w Aigure L f tmis mutl
U . tm t gming assut e tmat tmere are ? N : illimn t j terinans anp oat m tmeir life eH ren oann k is % :
kearsl jnp U . tm gming t assut e tmat tmere are eTen nut uers mA remr e fin ean m age grmur anp L
o mat tmere is a 20/5: srilt uetween t en anp b wenl t U . reak f f uit p w bn u k generatimn anp u seH k l
) w ? N iv: idep p u k r Ageneratimns w i e’ ials % : illimn t rer generatimnL anp ean m generatimn mas
Y : illimn t t en anp Y : illimn t wmt enl U . alsm f f assut e tmat as t en get mlperL an oally i as remr ef
get mlperL oere m will ue a greater rernentage mA oet m fsing w tmeir mairl
9 itm ten ages 3 -20, I’ll assume that no one or no significant number falls into that category.
Same with women. For those 21 -40, I’ll estimate that 20% of men and again 0% of women fall
into that category. The 41 -60 group has a higher percent — I’d say 40% of men and 1% of
women. And, finally, in the age range of 60-80, I’d guess 60% of men and 10% of women.
That totals around 52 million. From that number, I’m going to subtract 7 million. The reasons
are that some men shave their heads, some don’t care about going bald and others can’t
afford it, although we don’t know what the price tag is yet.
So I’ll estimate the market size of 45 million American customers.
– Okay, what’s next?
We need to price our product. I’d like to look at it three different ways. First, who is our
competition and what do they charge? Second, we’ll look at cost-based pricing. And third,
we’ll consider price-based costing. I just want to a take a moment to draw a diagram...
PRICING STRATEGIES