The Example of Fair-Trade Coffee Illustrates the Problem of Trying

question 126

Multiple Choice

The example of fair-trade coffee illustrates the problem of trying to stabilize returns to specific factors. What is the problem?

• A) Production is inherently egalitarian-all resources get the same return.
• B) When world coffee prices rise farmers of fair-trade coffee may receive a lower price than that offered on the world market.
• C) When coffee prices fall, the farmers will sell their plots and seek employment in other industries.
• D) Fair-trade efforts are unpopular among U.S. workers, who see imports increase and their returns from coffee production fall.

Recognize the different bases for segmenting a market (demographic, geographic, psychographic, and behavioral).

Identify and evaluate the criteria for successful market segmentation (measurable, substantial, accessible, differentiable, and actionable).

Distinguish between different market targeting strategies (undifferentiated, differentiated, and concentrated) and their implications.

Understand the role and process of positioning in marketing, including how it differs from segmentation.

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Definitions:

George Norris

An influential American politician known for his progressive ideas, particularly his advocacy for public power and opposition to political machines and monopolies.

Muckraker

Journalists or writers who expose corruption, injustices, and abuses of power in society, often leading to public outrage and demands for reform.

Robert M. Yerkes

An American psychologist best known for his work in intelligence testing and comparative psychology.

Intelligence Test

A standardized assessment used to measure a person's cognitive abilities and potential in comparison to the population.