1. Demand would most likely be inelastic for which of the following?
a. Lamb chops and t-bone steaks
b. Gourmet cheese
c. Symphony tickets
d. Luxury watches
e. Basic necessities
2. Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.
a. supply chain
b. enterprise resource planning system
c. vertical marketing system
d. value chain
3. When a major moving van company sells accessory products (boxes, bubble wrap, etc.) that must be used in moving a household's furniture, the company is practicing captive pricing.
a. True
b. False
4. If a company's differential advantage is its customer service, it has planned to:
a. generate highest possible customer satisfaction in order to attain customer loyalty.
b. be customer-driven and obsessed with providing better solutions to its customers.
c. invest in resources to constantly monitor customer response, plan great service recovery and ensure they have happy employees.
d. Only answers b and c are correct.