Question

Under Scenario I, if Brand X sets the price of the paid version at $24.99/annum (i.e. profile #5), which of the following statements is true based on your demand-based pricing analysis?

Group of answer choices

A. The paid version will capture more than 20% of the total market.

B. Brand X’s free version will retain at least 60% of the total market.

C. Brand X likely reclaims more than 10% of the total market from the competing brand.

D. None of the above

Answer 1

Option D (None of the above) is the correct choice because there isn't enough information provided about Brand X's price setting in Scenario I to confirm any of the other statements regarding market capture or retention.

Step-by-step explanation:

Without specific data from the scenario described regarding Brand X and its market share under Scenario I, none of the options A, B, or C can be confirmed as true based on a demand-based pricing analysis. Options A and C require information about market share percentages that is not provided. Option B focuses on the retention rate of Brand X's free version which also cannot be confirmed without additional details. Hence, Option D: None of the above is the correct answer because we lack the necessary information to make an informed decision about the other statements provided.