Setting price is your most important decision.
Setting price is your most important decision. You are managing a Rent a Car company that operates in 3 markets. You make a series of quarterly decisions that you submit. The simulation generates results which you review and inform you subsequent decision making. You can run the simulation as many times as you like.
Where necessary please use data or charts etc. from your analysis to illustrate your points. You may use outputs/results to support your observations and these may be placed in an appendix or be a part of the report. The emphasis of this simulation is to demonstrate self-learning.
Please answer the four questions below based on your experience running the simulation. Your answers should be restricted to a maximum of 4 pages, single-spaced, 12- point font (+plus exhibits as you see fit). Please use MS Word format.
How would you characterize the behavior of each city and each type of customer’s (business/leisure)?
How would you characterize the elasticity of demand in each market and overall? Which factor of demand heterogeneity (causes or sources of variance in demand) played the most critical role in your overall performance?
What pricing strategy did you use as you played the game? What was your objective — what were you trying to maximize? (i.e., profit maximization, market share maximization, meet competition, status quo, etc.). Overall how does price affect demand?
Make 3 strategic recommendations on how a specific car rental firm could gain market share and remain profitable in these markets going forward.
(Already I have answered the simulation, I just want to answer the questions)))
Requirements:
Answer preview to Setting price is your most important decision.
APA
1561 words