Use the Following to Answer Questions

question 10

Multiple Choice

Use the following to answer questions
Firefly is a new coach service operating in New South Wales and Victoria.It offers travellers a cheap alternative to driving and flying between large cities.The company keeps the fares extremely low yet offers the latest technology.Unlike traditional Greyhound coaches, Firefly is an express service and is equipped with wi-fi, video screens, headsets and seatbelts.Many coaches also run on biodiesel fuel.Additionally, Firefly picks up and drops off people in the centres of cities rather than at inconveniently located terminals.Patrons can book tickets online, and some fares begin at just $1.Routes are limited and are offered out of cities such as Sydney, Melbourne, Gosford and Newcastle.Recently, its competitor, Greyhound, has launched a new service, 'Point-to-Point', with similar fares and high-tech amenities.A fare on 'Point-to-Point' from Sydney to Melbourne is $50 each way, while the same fare through Greyhound costs $92.00.However, Greyhound offers more departure times and more stops in smaller towns along the way.
-If Firefly introduced a route on which the coach stopped more often, it would be considered a:

• A)brand extension.
• B)co-branding
• C)brand licensing.
• D)individual branding.
• E)brand conception.

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Definitions:

Marginal Utility

The additional satisfaction or benefit that a consumer derives from consuming an additional unit of a good or service.

Equilibrium

A state where supply and demand balance, and as a result, prices become stable.

Unit Price

The cost assigned to a single unit of a product or service, facilitating price comparisons among similar products based on per unit costs.

Marginal Utility

The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.