You Are a Computer Manufacturer and Will Introduce a New

question 65

Multiple Choice

You are a computer manufacturer and will introduce a new high-quality home entertainment system during the next six months.In the past you have had success using lifestyle analysis, particularly the VALS program, to help you profile your customers.Which of the following VALS type profiles would be the most logical target market for your new product?

• A)survivors
• B)believers
• C)makers
• D)achievers
• E)innovators

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it over a given period of time.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good or service is sensitive to changes in its price.

Monopolistic Competitor

A type of market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed, extracting maximum consumer surplus.