Chapter 9 Quiz

What type of strategy seeks to serve all customer groups in the market by offering a full line of related products?

broad-coverage strategy

What is the perceived benefit of a product per unit consumed minus the product+IBk-s monetary price?

consumer surplus

When multiple firms+IBk- price-quality positions line up along the same indifference curve offering a consumer the same amount of consumer surplus, what term describes the situation?

consumer surplus parity

What type of good is one whose quality can be assessed only after the customer has used it for a while?

experience good

What is another term for a +IBw-win-win+IB0- business opportunity?

gains from trade

What type of curve can be used to describe the set of price-quality combinations that yields the same consumer surplus to an individual?

indifference curve

What term coined by Michael Porter describes a tool that can be used to show how nearly every industry can be broken down into smaller pieces known as segments?

industry segmentation matrix

What term describes the price at which a consumer is indifferent between buying a product and going without it?

maximum willingness-to-pay

Which of the following is a characteristic of an experience good?

quality can be assessed only after the customer has used it for a while

Select the letter corresponding to the best answer. For a given consumer, any price-quality combination along the indifference curve yields the +AF8AXwBfAF8AXwBfAF8AXwBfAF8AXwBfAF8AXwBf-.

same consumer surplus

Which of the following best describes a focus strategy?

when a firm either offer a narrow set of varieties, serve a narrow set of customers, or do both