MGTA01H3 Chapter 5: book notes for chapter 5

1. Why do organizations use market segmentation? a) Segment marketing has proven to be the most successful approach over time b) Organizations have limited resources c) To have a clear understanding of the target market d) Both a) and c) e) Both b) and c)

44) The price of coffee beans rises on the international market by 7%. Because of its higher raw material costs, The Highland Creek Coffee Shop raises the price of its regular sized coffee by 5%. At the same time, Starbucks raises the price of its coffee at all of its Canadian locations by 9%. This kind of pricing decisions would suggest these businesses are engaged in: a) b) perfect competition a monopoly an oligopoly monopolistic competition