Scenario 1-5 Exodus Moving Is a Small Business That Was Created to Created

question 27

Multiple Choice

Scenario 1-5
Exodus Moving is a small business that was created to serve local furniture stores' delivery needs in the Boulder Colorado area.They have specialized equipment that allows them to lift and transfer large, bulky pieces of furniture with less risk of damage than most traditional movers.Many of these furniture stores do not sell enough volume to keep their own trucks and drivers busy all of the time, so Exodus fills a real market need.As a result, most such stores are very interested in outsourcing delivery service needs.Exodus has attracted many customers from these stores by guaranteeing 48 hour delivery within a 50 mile radius of any of the stores they serve.Eventually, Exodus hopes to attract the business of other retailers who might require delivery services.
-(Scenario 1-5) As a result of vigorous advertising, Exodus has created inelasticity of demand to price changes. Which of the following will hold true in such a situation?

• A)The company's customers will have low brand loyalty.
• B)The customers will be less sensitive to price increases by the company.
• C)The company will need to lower the price of its delivery services.
• D)The company will have low brand equity.

---

Definitions:

OCD-Related Disorders

A category of psychiatric disorders characterized by obsessions (intrusive, unwanted thoughts) and compulsions (repetitive behaviors or mental acts) that an individual feels driven to perform.

Compulsively Pulls Hair

A behavioral condition known as trichotillomania, characterized by an irresistible urge to pull out one's own hair.

Obsessive-Compulsive Disorder

A mental health disorder characterized by recurring, unwanted thoughts (obsessions) and repetitive behaviors (compulsions).

Genetic Component

Referring to the contribution of genes or hereditary factors in the development or manifestation of an organism's traits or conditions.