Product details

Cambridge Software Corp must decide whether or not to offer multiple versions of a new software product. The firm has identified five market segments for the software and is deciding which, if any, of three product versions (a high end 'industrial' version, a mid-range 'commercial' version, and a low-end 'student' version) to offer. The decision depends on the size of the different market segments, the customers' willingness- to-pay, and the costs of developing and producing each of the three versions.