Consumer Behaviour

Assume that you are the owner of 2 furniture stores, one catering to upper middle class consumers and the other 2 lower class consumers.

How do social class differences influence each stores:a) product lines and stylesb) advertising, media selectionc) payment policies.

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Discuss how lifestyle influences consumers’ buying behavior and how marketers measure lifestyle.

As the owner of a BMW automobile dealership, what kind of marketing and service strategies would you use to target working women?

A firm has a short-run variable cost function VCsr (Q) = Q3 – 10Q2 + 30Q.

a) Calculate the short-run marginal and average cost at this production level. (4 marks)

b) If the market price is p = Sh. 18, how much would the firm decide to produce?

(6 marks)

(Note: If you obtain two possible values for Q, choose the highest.)




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