A Student Would Like to Buy a Crossover SUV from a Local

question 131

Multiple Choice

A student would like to buy a crossover SUV from a local dealer, but she thinks the payments will be too high. Marketing does not occur in this situation because

• A) two or more parties have unsatisfied needs.
• B) there is no desire on the part of either party to satisfy its needs.
• C) one of the involved parties does not have the ability to satisfy its needs.
• D) there is no way for each party to communicate with one another.
• E) there has been no assessment of consumer wants and needs.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or sales activity, such as raw material and labor costs.

Fixed Cost

Expenses that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Period Cost

Costs that are expensed in the period in which they are incurred, typically including selling and administrative expenses, rather than being included in the cost of goods sold.

Helpline Costs

Expenses incurred in the operation of a support service for customers, such as salaries for help desk staff and telecommunication charges.