Inkjet Printer Pricing

The inkjet printer business had adopted the “bait and hook”, also known as the “razors and blades” or “tied-products”, business strategy, offering the basic printer product at a very low (possibly below cost) price but charging a highly marked-up price for its proprietary ink cartridge. This case ex...

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Main Authors: LEONG, Thin Yin, MA, Nang Laik
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2011
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Online Access:https://ink.library.smu.edu.sg/sis_research/1364
http://dx.doi.org/10.1287/ited.1100.0052cs
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spelling sg-smu-ink.sis_research-23632011-05-04T07:00:22Z Inkjet Printer Pricing LEONG, Thin Yin MA, Nang Laik The inkjet printer business had adopted the “bait and hook”, also known as the “razors and blades” or “tied-products”, business strategy, offering the basic printer product at a very low (possibly below cost) price but charging a highly marked-up price for its proprietary ink cartridge. This case explores the pricing of two interrelated products: printer and its ink cartridge to maximize the overall profit. This case is designed as an introductory level case study that emphasizes the basics of spreadsheet modeling. The real learning points of this case are to improve the students’ skills of modeling a business problem of this nature, determine the parameters involved, explore the tradeoffs between different pricing criteria and analyze how profit can be affected by variations in the input parameter values such as printer cost, cartridge cost, printer price elasticity, and cartridge-to-printer projected sales ratio. 2011-01-01T08:00:00Z text https://ink.library.smu.edu.sg/sis_research/1364 info:doi/10.1287/ited.1100.0052cs http://dx.doi.org/10.1287/ited.1100.0052cs Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Tied products pricing Spreadsheet modeling Business Computer Sciences
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Tied products pricing
Spreadsheet modeling
Business
Computer Sciences
spellingShingle Tied products pricing
Spreadsheet modeling
Business
Computer Sciences
LEONG, Thin Yin
MA, Nang Laik
Inkjet Printer Pricing
description The inkjet printer business had adopted the “bait and hook”, also known as the “razors and blades” or “tied-products”, business strategy, offering the basic printer product at a very low (possibly below cost) price but charging a highly marked-up price for its proprietary ink cartridge. This case explores the pricing of two interrelated products: printer and its ink cartridge to maximize the overall profit. This case is designed as an introductory level case study that emphasizes the basics of spreadsheet modeling. The real learning points of this case are to improve the students’ skills of modeling a business problem of this nature, determine the parameters involved, explore the tradeoffs between different pricing criteria and analyze how profit can be affected by variations in the input parameter values such as printer cost, cartridge cost, printer price elasticity, and cartridge-to-printer projected sales ratio.
format text
author LEONG, Thin Yin
MA, Nang Laik
author_facet LEONG, Thin Yin
MA, Nang Laik
author_sort LEONG, Thin Yin
title Inkjet Printer Pricing
title_short Inkjet Printer Pricing
title_full Inkjet Printer Pricing
title_fullStr Inkjet Printer Pricing
title_full_unstemmed Inkjet Printer Pricing
title_sort inkjet printer pricing
publisher Institutional Knowledge at Singapore Management University
publishDate 2011
url https://ink.library.smu.edu.sg/sis_research/1364
http://dx.doi.org/10.1287/ited.1100.0052cs
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