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1-22PROSPECTIVE CUSTOMERSAPPLICATIONThe Terrafugia Transition is a 19-foot, two-seater road-drivable, light-sport aircraft with an anticipated price of $250,000. The most likely prospective customers for this flying car would includea.students interested in science fiction.b.retired seniors receiving social security.c.executives for whom time is extremely important.d.teens who like to try new things.e.All of the people above are likely prospective customers of the Transition.Answer:cPage(s):5, 9LO: 1AACSB: AnalyticQD: Hard- 10 -
Rationale:A prospective customer includes anyone who would benefit from owning a product. However, the most likely prospective customer in this case would be an executive for whom time is extremely important. Both the benefits of the Terrafugia Transition and the willingness and ability to pay for it are needed for prospective customers to become actual customers.1-23EXCHANGEKNOWLEDGEIn marketing, the idea of exchange refers toLO: 1AACSB: AnalyticQD: EasyRationale:Key term definition—exchange.1-24EXCHANGEKNOWLEDGEMarketing seeks to discover the needs and wants of prospective customers and satisfy them. Essential to this process is the idea of exchange, which refers toAnswer:aPage(s):5LO: 1AACSB: AnalyticQD: EasyRationale:Key term definition—exchange.1-25EXCHANGEKNOWLEDGEThe trade of things of value between buyer and seller so that each is better off after the trade is referred to as __________.a.financial remunerationb.exchangec.countertraded.bartere.marketingAnswer:bPage(s):5LO: 1AACSB: AnalyticQD: EasyRationale:Key term definition—exchange.1-26EXCHANGEAPPLICATION- 11 -