When ski butternut reduced the first time skier package from $135 to $75, first time skiers:

a. experienced unitary elasticity for ski lessons.

b. saw a profit maximization scheme based on discounting the first visit and charging a lot more once the skier is hooked.

c. saw a perceived reasonable value for an activity they haven't tried yet.

d. bartered for lower priced rentals?

Question

Business

Alfonso Noble

30 May, 21:08

When ski butternut reduced the first time skier package from $135 to $75, first time skiers:

a. experienced unitary elasticity for ski lessons.

b. saw a profit maximization scheme based on discounting the first visit and charging a lot more once the skier is hooked.

c. saw a perceived reasonable value for an activity they haven't tried yet.

d. bartered for lower priced rentals?

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Answers (1)

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Laurel Knox · Answer 1

When ski butternut reduced the first time skier package from $135 to $75, first time skiers:

a. experienced unitary elasticity for ski lessons.

b. saw a profit maximization scheme based on discounting the first visit and charging a lot more once the skier is hooked.

c. saw a perceived reasonable value for an activity they haven't tried yet.

d. bartered for lower priced rentals?

Explanation:

The correct answer is 'b', The ski butternut used a strategic approach where they are offering a discounted package for first timers to attract them and once the skiers are comfortable and hooked they would again increase their prices and charge the skiers the high price now.