A Consumer Products Manufacturer Wants Consumer Reaction to Its Existing

question 53

Multiple Choice

A consumer products manufacturer wants consumer reaction to its existing products.Because the firm considers interaction important to stimulate thinking,it should use

• A)the observation method.
• B)a focus group interview.
• C)the GSR (galvanic skin response)method.
• D)a quantitative interview.
• E)a telephone interview.

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Definitions:

Elasticity of Demand

The measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Profit-maximizing Price

The selling price that allows a firm to earn the highest possible profit given its cost structure and market demand.

Per Capita Income

The mean earnings received by an individual in a specific region or nation.