MARKETING
MARKETING
7th Edition
ISBN: 9781260087710
Author: Grewal
Publisher: RENT MCG
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Chapter 2, Problem 5MA
Summary Introduction

To discuss: The value created by Company D and the way it affects it price.

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Model Assumptions and Resultant Outcomes  The AD-AS and AE models you have used have different underlying assumptions. Outline the major underlying difference(s) between the two models. Briefly discuss and illustrate how the how the difference(s) in the model assumptions impact the degree of the potential impact on the economy. Use the AD-AS Model and provide ONE diagram to illustrate the potential difference in outcomes depending on the assumptions made. (Hint - consider the assumptions underlying the AE model - what SRAS curve reflects this?) 200 Word Maximum
Identify and describe a local or online store you often shop at. Include a picture if you like. Describe two ways the store uses behavioral economics to encourage you to spend more time, return frequently, and spend more money there. Cite at least one theory discussed in this course for each strategy identified. If you were a consultant for this store, suggest one way they could increase sales using behavioral economics concepts discussed in this course. (Optional: Suggest it to the owner. How do they respond?) Critique your past spending decisions at this store. Suggest a decision-making process that could guide you to spend more wisely there in the future.
The definition of luxury is the pleasure of something that is not necessary to one's survival. The basic needs of most people are food, shelter, and water. Many people in the United States would put in new wiring and bathrooms. These days, a lot of individuals think having an Internet connection is vital. Is there a need for it? What about those who either don't have or don't use the Internet? What potential consequences may having to be online have on the expansion of online shopping?
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