Suppose a Consumer Buys Two Goods $x$ And $y$ , and Has Income Of

question 63

Multiple Choice

Suppose a consumer buys two goods, $x$ and $y$ , and has income of $\$ 30$ . Initially $P _ { x } = 3$ and $P _ { y } =$ 3 and the consumer chooses basket $A$ with $x = 5$ and $y = 5$ . The prices change to $P _ { x } = 4$ and $P _ { y } = 2$ and the consumer chooses basket $B$ with $x = 1$ and $y = 13$ .

• A) These choices are consistent with utility maximization.
• B) These choices are not consistent with utility maximization.
• C) With this information it is not possible to determine if these choices are consistent with utility maximization.
• D) Basket \(B\) must be strictly preferred to basket \(A\).

Recognize the importance of linking customer needs to marketing actions in the process of segmenting and targeting markets.

Identify the reasons and benefits of market segmentation for businesses.

Distinguish between various bases of market segmentation including demographic, geographic, psychographic, and behavioral.

Describe the steps involved in segmenting and targeting markets and their importance in developing a marketing strategy.

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Definitions:

Distributors

Entities or individuals responsible for delivering a company's products from the manufacturer to the ultimate consumer or retailer.

Consumer Markets

Markets that consist of individuals and households that purchase goods and services for personal consumption.

Business-To-Business Markets

Markets where transactions are conducted between companies, rather than between companies and individual consumers.

Purchase Decisions

Purchase Decisions involve the thought process and actions of consumers or businesses leading up to the buying of a product or service, influenced by various internal and external factors.