Using the survey’s price elasticity information (for an arbitrary number of 100 potential customers):
30 users at $5 = $150/flight 25 users at $10 = $250/flight 20 users at $15 = $300/flight 10 users at $20 = $200/flight 5 users at $25 = $125/flight
Key Insight: Total revenue is maximized at $15.
Since this is an interviewer-led case, the interviewer should guide the candidate through the interview.
This is a market entry case. The interviewee must evaluate a new product’s feasibility within the airline industry.