Both Brown Town and Yellowville have popular downtown shopping districtswith nearby parking. But Brown Town has five parking facilities within the district, while Yellowville has only one. You are the owner of one of Brown Town's five garages. Recently, you also purchased the single facility in Yellowville. Costs are increasing across the parking industry, so you decide to boost prices in both your garages by the same amount. You know that customers won't be happy, and you're bracing for a downturn in business. All else being equal, are you more likely to lose customers in Brown Town or in Yellowville? Why?
Both Brown Town and Yellowville have popular downtown shopping districtswith nearby parking. But Brown Town has five parking facilities within the district, while Yellowville has only one. You are the owner of one of Brown Town's five garages. Recently, you also purchased the single facility in Yellowville. Costs are increasing across the parking industry, so you decide to boost prices in both your garages by the same amount. You know that customers won't be happy, and you're bracing for a downturn in business. All else being equal, are you more likely to lose customers in Brown Town or in Yellowville? Why?
Chapter14: Marketing Channels And Supply Chain Management
Section14.1: Taza Cultivates Channel Relationships With Chocolate
Problem 1VC
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Both Brown Town and Yellowville have popular downtown shopping districts
with nearby parking. But Brown Town has five parking facilities within the district, while Yellowville has only one. You are the owner of one of Brown Town's five garages. Recently, you also purchased the single facility in Yellowville. Costs are increasing across the parking industry, so you decide to boost prices in both your garages by the same amount. You know that customers won't be happy, and you're bracing for a downturn in business. All else being equal, are you more likely to lose customers in Brown Town or in Yellowville? Why?
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