The Marketing Manager of Icruise

question 1

Multiple Choice

The marketing manager of icruise.com (a website targeted to consumers who want a luxury vacation) finds that the firm can gain market share and become the industry leader if it slashes prices by 50 percent during December.However,the vice-president of finance is committed to reporting a 25 percent return on investment at all times.What does this conflict illustrate?

• A) how target markets can be ignored
• B) how pricing operates in a mature marketplace
• C) a lack of corporate concentration on the marketing concept
• D) the need for tradeoffs in pricing objectives

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Definitions:

Mixed Economy

An economic system that combines elements of capitalism and socialism, including both private and public ownership of resources and enterprises.

Laissez Faire

An ideology that supports a capitalist market economy free from regulatory oversight by the government.

Basic Questions

Basic Questions in economics typically refer to the fundamental queries about what to produce, how to produce, and for whom to produce, guiding allocation of resources.

Market Failure

A scenario where the distribution of goods and services through a free market fails to achieve efficiency, typically resulting in a decrease in overall social welfare.