John Needed Transportation

question 313

Multiple Choice

John needed transportation. Now that his new marketing job was on the horizon, it was time to go shopping. New was probably going to be out of the question. As he reviewed his options, he listed the kinds of things he wanted in a vehicle: the ability to carry some large things; a comfortable back seat for his two dogs; 4-wheel drive for snow and ice; and economical on gas. Marketers know that today's consumers:

• A) are educated and very savvy and are looking for features and not benefits.
• B) are willing to pay just about any price if they find the features they want.
• C) look for the best value (benefits outweigh the cost).
• D) are always economically sensitive, first.

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Definitions:

Perfectly Elastic

Refers to a situation in demand or supply where quantity changes infinitely with any change in price.

Compounded

In finance, it refers to the process where interest is calculated on the initial principal and also on the accumulated interest of previous periods.

Actual Annual

Refers to the true or realistic yearly financial or quantitative performance or output of an entity or activity.

Interest Rate

The cost of borrowing money or the return for investing money, usually expressed as a percentage of the principal amount per year.