"The Operator of the Tunnel That Links Britain and France

question 76

Essay

"The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply in 2004, leading to a drop in operating revenues of 4%. Eurotunnel's chief executive, Jean-Louis Raymond, blamed cut-throat competition from budget airlines." (news story, January 2005)
a.If Mr. Raymond is correct, are the services of airlines and Eurotunnel substitutes or complements?
b.Use demand and supply analysis to explain how lower airfares between Paris and London impact the market for the shuttle services of Eurotunnel.

Understand the influence and reliability of word-of-mouth in marketing.

Identify various roles in social influence such as mavens, connectors, and salesmen.

Recognize the weight of negative vs. positive comments in consumer decision-making.

Comprehend key theories such as the two-step flow model of influence.

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Definitions:

Diagnosis

The identification of the nature or cause of a particular phenomenon, often used in the context of medical conditions but also applicable to problem-solving in various fields.

Team Building

An effort to increase the effectiveness of work teams by improving interpersonal processes, goal clarification, and role clarification.

Stakeholders

People inside or outside of an organization who have the potential to be affected by organizational decisions.

Champions

Individuals within an organization who actively support, advocate for, and ensure the success of a project or innovation.