- What is the market potential for the Bair Hugger heater/blower unit?
- What is the market potential for the disposable warming blanket?
- What is the felt need, the relative advantage, compatibility, simplicity, triability, and immediacy of benefit of the Bair Hugger system (see Chapter 5, New Offering Development Process)?
- What pricing objectives should Bair Hugger consider for each product? Explain your rationale.
- What determines the price floor (minimum price) and the price ceiling (maximum price) for this system?
- What is cross-elasticity of demand and how is it related to this case? How does this influence your pricing decisions?
- Provide a recommendation for a price for the heater/blower unit and for the disposable warming blanket. Provide a rationale for these prices. Calculate the breakeven point for these prices. Show your assumptions and calculations. What is the market share needed to break even, based on the market potential? Do you think this is achieveable?
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