Author: Anonymous

In reality, it is very easy for firms to estimate their demand and cost functions.

If a calculator company produces 100,000 hand calculators at a cost of $10, but the cost drops to $9 when it produces 200,000 and $8 when it produces 400,000 hand calculators, the decline in average cost with accumulated product experience is called the price elasticity of demand.

The sprinkler approach is an entry strategy where a company gradually enters countries in sequence.

Companies enter the international market only when their domestic markets are saturated.

According to Herzberg’s two-factor theory, satisfiers will make the major difference as to which brand the customer buys.

When a product is more distinctive, it leads to less price sensitivity.

Given the highly competitive nature of business-to-business markets, the biggest enemy to marketers here is commoditization.

Psychogenic needs arise from the physiological states of tension such as hunger or discomfort.

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

Business buyers often select suppliers who also buy from them.