Kawai Lei
19536104
4 December , 2017
Individual Assignment #2
Question 1
This case illustrates a situation where five transactions took place in a store during specific period. Thus, the matrix could be rewritten as following (1 for purchase, 0 for no purchase);
Transaction Beer Chips Milk Diapers Soda
1 1 1 1 0 1
2 1 1 1 0 0
3 1 1 1 1 1
4 0 0 1 1 1
5 1 0 1 1 1 Part (a)
Case 1
Support is equal to the number of transactions where the customer bought (Chips and milk) divided by the total number of transactions, thus, support = 3/5 = 0.6
Confidence is equal to number of transactions where the customer bought (Chips and milk) divided by number of transaction where chips was bought and thus, confidence = 3/3 =1
Lift is equal to 0.6/[(3/5)*(5/5)] …show more content…
It can stimulate each other sales. People always want to drink sodo when they are eatting chips.
Question 2
Part (i)
Based on potential client’s willingness to pay as well as other provided information, I shall develop four price combinations as following; (figures are in $) Professional Home Combination 1 $ 600 $ 400 Combination 2 $ 600 $ 300 Combination 3 $ 500 $ 400 Combination 4 $ 500 $ 300
Fir each price combination we can then conduct an analysis in order to 1). Determine the total revenue. 2). to understand whether each client will buy or not (based on the clients surplus calculation) and thus, Combination 1 Professional Home 600 400 Buyer Surplus/Decision Professional Home
Buyer A 0 /Buy 0 /Buy
Buyer B (-100) / no Buy (-100) / no Buy
Total Revenue $400 from selling Home edition to buyer A Combination 2 Professional Home 600 …show more content…
One suggested definition is that the two sided platform is an entity that generates value primarily by allowing direct interactions between several distinct types of affiliated customers (Hagiu and Wright, 2015). According to this definition, App Store as a digital content marketplace has enabled a direct commercial interactions between developers and users as stated in terms of purchase agreement where the liabilities and the purchase is made between the user and a third party (not Apple). Thus, we can say that App Store is a two sided
19536104
4 December , 2017
Individual Assignment #2
Question 1
This case illustrates a situation where five transactions took place in a store during specific period. Thus, the matrix could be rewritten as following (1 for purchase, 0 for no purchase);
Transaction Beer Chips Milk Diapers Soda
1 1 1 1 0 1
2 1 1 1 0 0
3 1 1 1 1 1
4 0 0 1 1 1
5 1 0 1 1 1 Part (a)
Case 1
Support is equal to the number of transactions where the customer bought (Chips and milk) divided by the total number of transactions, thus, support = 3/5 = 0.6
Confidence is equal to number of transactions where the customer bought (Chips and milk) divided by number of transaction where chips was bought and thus, confidence = 3/3 =1
Lift is equal to 0.6/[(3/5)*(5/5)] …show more content…
It can stimulate each other sales. People always want to drink sodo when they are eatting chips.
Question 2
Part (i)
Based on potential client’s willingness to pay as well as other provided information, I shall develop four price combinations as following; (figures are in $) Professional Home Combination 1 $ 600 $ 400 Combination 2 $ 600 $ 300 Combination 3 $ 500 $ 400 Combination 4 $ 500 $ 300
Fir each price combination we can then conduct an analysis in order to 1). Determine the total revenue. 2). to understand whether each client will buy or not (based on the clients surplus calculation) and thus, Combination 1 Professional Home 600 400 Buyer Surplus/Decision Professional Home
Buyer A 0 /Buy 0 /Buy
Buyer B (-100) / no Buy (-100) / no Buy
Total Revenue $400 from selling Home edition to buyer A Combination 2 Professional Home 600 …show more content…
One suggested definition is that the two sided platform is an entity that generates value primarily by allowing direct interactions between several distinct types of affiliated customers (Hagiu and Wright, 2015). According to this definition, App Store as a digital content marketplace has enabled a direct commercial interactions between developers and users as stated in terms of purchase agreement where the liabilities and the purchase is made between the user and a third party (not Apple). Thus, we can say that App Store is a two sided