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MS-231 Package Bundling v05

[Market Simulation] MS-231 Package Bundling
Market Simulation (MS-231) - Package BundlingCustomers already have the choice of purchasing two individual Productsinstead of just one. But what would happen if you provided Customers with theoption of purchasing a pre-packaged Bundle? This Market Simulation exploreswhether packaging together a Bundle from individual Products can increaseSales, Revenue, and Profitability. Competitive Story:The Spacely Sprockets company noticed that Customers either bought 1 or 2Sprockets. Spacely estimated that Customers valued the second Sprocket about30% less than the first, but that it was still often worth it for these Customers to buythe both individually if Sprockets were a critical component. Spacely believed thatpackaging two Sprockets together as a Bundle and selling them at a discountwould increase Profitability. Spacely reasoned that, while the value of the secondSprocket would still be lower, the cheaper Bundle would drive more sales. Define the Willingness To Pay(WTP) for just the single-saleversions of Spacely Sprocketsand Cogswell Cogs. This Top Branch simulates atwo-stage Market whereCustomers purchase their firstProduct, then decide whether topurchase a second Product. The 'Spacely Bundle' is simply asingle package 'Twin Pack' withtwo Spacely Sprocket Productsinside. Customers can either buy:1. Spacely Single2. Spacely Bundle3. Cogswell Single* 2nd Cogswell not considered Spacely can raise Quantity,Revenue, and Profitability byoffering Customers theconvenience of buying a Bundleat a discounted Price. This Bottom Branch simulates aone-stage Market whereCustomers purchase either asingle Product or the Bundle.SprocketProductsWTPMatrixFirstPurchaseReduce Valueby 30%SecondPurchaseSumSalesPackage2 x SprocketsDefineBundleBuy SingleOr Buy BundleSumSalesSpacelySprocketsSpacelySprocketsRe-ScaleBundle QuantityBefore vs.AfterTotalTransactions Table Creator CustomerDistributions Simulate Market Scale Purchased Simulate Market GroupBy Bundle Generator Table Creator Simulate Market GroupBy Row Filter Row Filter Java Snippet Concatenate Concatenate Market Simulation (MS-231) - Package BundlingCustomers already have the choice of purchasing two individual Productsinstead of just one. But what would happen if you provided Customers with theoption of purchasing a pre-packaged Bundle? This Market Simulation exploreswhether packaging together a Bundle from individual Products can increaseSales, Revenue, and Profitability. Competitive Story:The Spacely Sprockets company noticed that Customers either bought 1 or 2Sprockets. Spacely estimated that Customers valued the second Sprocket about30% less than the first, but that it was still often worth it for these Customers to buythe both individually if Sprockets were a critical component. Spacely believed thatpackaging two Sprockets together as a Bundle and selling them at a discountwould increase Profitability. Spacely reasoned that, while the value of the secondSprocket would still be lower, the cheaper Bundle would drive more sales. Define the Willingness To Pay(WTP) for just the single-saleversions of Spacely Sprocketsand Cogswell Cogs. This Top Branch simulates atwo-stage Market whereCustomers purchase their firstProduct, then decide whether topurchase a second Product. The 'Spacely Bundle' is simply asingle package 'Twin Pack' withtwo Spacely Sprocket Productsinside. Customers can either buy:1. Spacely Single2. Spacely Bundle3. Cogswell Single* 2nd Cogswell not considered Spacely can raise Quantity,Revenue, and Profitability byoffering Customers theconvenience of buying a Bundleat a discounted Price. This Bottom Branch simulates aone-stage Market whereCustomers purchase either asingle Product or the Bundle.SprocketProductsWTPMatrixFirstPurchaseReduce Valueby 30%SecondPurchaseSumSalesPackage2 x SprocketsDefineBundleBuy SingleOr Buy BundleSumSalesSpacelySprocketsSpacelySprocketsRe-ScaleBundle QuantityBefore vs.AfterTotalTransactionsTable Creator CustomerDistributions Simulate Market Scale Purchased Simulate Market GroupBy Bundle Generator Table Creator Simulate Market GroupBy Row Filter Row Filter Java Snippet Concatenate Concatenate

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Created by: Berlin
Created at: 2018-12-13
On NodePit since: 2021-02-05
Last update: 2024-11-18
Created with KNIME version: v4.3.0

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