SCENARIOS Continental Lite

question 97

Multiple Choice

SCENARIOS
Continental Lite
In the mid-1990s,Continental Airlines chose to compete head-on with Southwest Airlines by launching Continental Lite,an alternative low-fare commercial airline passenger operation.Top executives at Continental had expected its no-frills operation to break even within a year of its inception,but the airline fell short of the goal.A source close to the company explained it by saying,"Its costs were too high,and its revenues were too low." Some observers criticized Continental's marketing efforts.When the no-frills service was first launched,it lacked a distinct name or identity,missing its chance to make a splash.Then Continental tried to sell three "brands" at once--Lite,a new premium service,and its more traditional long-haul domestic flights.As one rival expressed it,"You cannot be all things to all people."
-Refer to the American Girl Doll.Which of the following factors is most likely to affect the elasticity of demand for the doll?

• A) the absence of substitutes
• B) the existence of complementary products
• C) the price relative to purchasing power
• D) product durability
• E) a variety of alternative uses for the product

---

Definitions:

Reaction Formation

A defense mechanism where an individual behaves in a manner opposite to their actual feelings, often to hide their true emotions.

Pornography

Material intended to cause sexual arousal that depicts sexual content in a manner designed to elicit or enhance sexual feelings.

Erogenous Zones

Areas of the human body that are particularly sensitive to stimulation and can lead to sexual arousal.

Psychosexual Stages

Psychosexual stages are a series of developmental phases in psychoanalytic theory, proposed by Freud, that children pass through, each characterized by different modes of seeking pleasure.