"The Consumer Is Sovereign

question 58

Multiple Choice

"The consumer is sovereign. Businesses produce what people want. The problem today is that because of externalities, often the decisions of firms do not reflect consumer preferences." The speaker is implying:

• A) both market failure and failure of market outcome.
• B) market failure but not failure of market outcome.
• C) failure of market outcome but not market failure.
• D) neither market failure nor failure of market outcome.

Learn about the strategic approaches to differentiation and cost leadership in marketing.

Gain insights into the importance of meeting customer needs as the core of a marketing strategy.

Identify the elements and importance of a marketing-oriented strategy to a firm’s profitability and competitive advantage.

Understand the role of marketing strategy in defining a business’s purpose and guiding its actions to achieve profitable customer relationships.

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Definitions:

Cerebellum

A region of the brain that plays an important role in motor control and may also be involved in some cognitive functions such as attention and language.

Diathesis-Stress Model

Model that asserts that only when a diathesis or vulnerability interacts with a stress or trigger will a disorder emerge.

Vulnerability

The state in which there is a risk of encountering harm or assault, emotionally or physically.

Social Trigger

An environmental or interpersonal stimulus that influences one's emotional state or behavior.