Max Is Shopping for a New Winter Jacket

question 17

Multiple Choice

Max is shopping for a new winter jacket. He is deciding between two coats that have identical features but are made by different brands: Columbia and Michael Kors. The Columbia jacket costs $120 and the Michael Kors jacket costs $300. Max decides to buy the Michael Kors jacket. This indicates that the Michael Kors jacket may be a(n) _____ good.

• A)normal
• B)inferior
• C)Veblen
• D)Giffen

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Definitions:

W. Edwards Deming

An American engineer, statistician, and management consultant, credited with significant contributions to the philosophy and practice of quality control and improvement.

Process Re-Engineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical areas such as cost, quality, service, and speed.

Mechanistic Organisation Design

A form of organizational structure characterized by rigid departmentalization, a clear hierarchy of authority, and a high degree of formalization in procedures and rules.

Strategic Objectives

Specific, measurable goals that an organization aims to achieve as part of its larger strategy.