In Which of the Following Circumstances Is an Organization Likely

question 25

Multiple Choice

In which of the following circumstances is an organization likely to engage in full partnerships with key consumers?

• A) when the market has a huge number of customers
• B) when the market has few customers and high margins
• C) when the firm has a frequency marketing program
• D) when the firm has a large number of low-margin customers
• E) when the firm has few marketing resources at its disposal

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Definitions:

Elastic Demands

A situation where the demand for a good or service significantly changes in response to changes in its price.

Close Substitutes

Products or services that can easily replace each other in the eyes of the consumer, offering similar benefits and functionalities.

Inelastic

A term describing a situation in which the quantity demanded or supplied of a good or service is relatively unresponsive to changes in price.

Elastic

Describes a situation in which the demand for a good or service significantly changes in response to changes in price.