If the Price of a Cup of Dunkin' Donuts Coffee

question 146

Multiple Choice

If the price of a cup of Dunkin' Donuts coffee increases while the price of a Starbucks latte is unchanged,we expect the number of lattes purchased at Starbucks to:

• A) increase as some people switch from Dunkin' Donuts coffee to Starbucks lattes.
• B) decrease as some people switch from Dunkin' Donuts coffee to the Starbucks lattes.
• C) decrease as some people have less money to spend on caffeinated beverages.
• D) decrease as some people switch from Starbucks lattes to Dunkin' Donuts coffee.

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Definitions:

Market-product Grid

A matrix used to help businesses determine which products to offer in which markets.

Competitive Advantage

The attributes or conditions that enable a company to produce goods or services better or more cheaply than its competitors, thus providing greater value to customers.

Head-to-head Positioning

A marketing strategy where products are directly compared with competitors' offerings to highlight superior features or value.

Product Attributes

The characteristics or features of a product, such as quality, design, and brand, that define it and contribute to its appeal.