The Examples of Ikea and Southwest Airlines Illustrate

question 48

Multiple Choice

The examples of Ikea and Southwest Airlines illustrate:

• A)The power of brand as a factor of success
• B)The quality of the top management of these firms
• C)The power of advertising
• D)How a low-price, no-frills business strategy can still be combined with memorable (but very low cost) product differentiation

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in the consumer's income.

Midpoint Method

A technique used to calculate the percentage change between two values, avoiding the problem of path dependency by using the average of the initial and final values as the base.