Customers Must See Value in a Product or Service Before

question 79

Multiple Choice

Customers must see value in a product or service before they are willing to exchange time or money to obtain it,but not all customers see the same value in a product.To analyze how many units will be sold at any given price point,marketers draw on

• A) a demand curve.
• B) the law of averages.
• C) multiple regression analyses.
• D) target return strategies.
• E) a sales orientation.

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Definitions:

Inelastic Segment

A range on the demand curve where the quantity demanded changes little when the price changes.

Price-Quantity Combination

A specific pairing of price and quantity that appears on the supply or demand curve, representing a potential market transaction.

Imperfectly Competitive

Describes markets where individual buyers or sellers have some control over the price of goods and services due to a lack of perfect competition, often resulting in market power and price distortion.

Downsloping Demand Curves

A graphical representation showing that the quantity demanded of a good or service decreases as its price increases, holding other factors constant.