Question

An online subscription shopping service, WillixShop, is testing different plans to offer to its consumers. Consumers can sign up for a Silver, Gold, or Platinum level plan. The more expensive the plan, the more items and special services consumers get each month. There are three scenarios, Scenario A, B, or C, and in each scenario, the features and prices of each plan are different. Consumers were shown 2 of the 3 scenarios and asked which plan they would purchase. Based on the data below, which Scenario would you recommend to WillixShop?

Scenario A:

Silver: $20, 5 items
Gold: $30, 8 items
Platinum: $40, 12 items
Scenario B:

Silver: $25, 6 items
Gold: $35, 10 items
Platinum: $45, 14 items
Scenario C:

Silver: $18, 4 items
Gold: $28, 7 items
Platinum: $38, 10 items
a) Scenario A
b) Scenario B
c) Scenario C
d) Insufficient data to recommend

Answer 1

Scenario B offers the best value for consumers, with a slightly higher number of items compared to Scenario A at a slightly higher price, but still offers better value than Scenario C.

Step-by-step explanation:

To determine which scenario to recommend to WillixShop, we need to analyze the features and prices of each plan and compare them. In Scenario A, the Silver plan costs $20 and offers 5 items, the Gold plan costs $30 and offers 8 items, and the Platinum plan costs $40 and offers 12 items. In Scenario B, the Silver plan costs $25 and offers 6 items, the Gold plan costs $35 and offers 10 items, and the Platinum plan costs $45 and offers 14 items. In Scenario C, the Silver plan costs $18 and offers 4 items, the Gold plan costs $28 and offers 7 items, and the Platinum plan costs $38 and offers 10 items.Comparing the prices and the number of items offered, we can see that Scenario B offers the best value for consumers. It provides a slightly higher number of items compared to Scenario A at a slightly higher price, but still offers better value than Scenario C. Therefore, I would recommend Scenario B to WillixShop.