Lecture 2

Question 1

Features & Behavior of Producer

Answer 1

1. Geographic Concentration
2. Bulk Production
3. Limited Product Lines &Variations
4. Long Production Runs
5. Possession

Question 2

Features & Behavior of Consumers

Answer 2

1. Wildly Dispersed
2. Purchase in Small Amounts
3. Buy Frequently at any time
4. Desire to take title
5. Buy a Wide Assortment

Question 3

Spatial Discrepancy

Answer 3

The difference between the location of a producer and the location of markets/customers.

Question 4

Quantity Discrepancy

Answer 4

The difference between the amount of product produced and the amount an end user wants to buy at a given time.

Question 5

Form Discrepancy

Answer 5

Difference between the form or size in which a product is available and how the consumer desires it.

Question 6

Temporal Discrepancy

Answer 6

Difference between the time a customer wants a product and when it is available

Question 7

Assortment Discrepancy

Answer 7

The difference between the variety consumers desire and the assortment a single company produces.

Question 8

Possession Discrepancy

Answer 8

Producer owns/has the product, consumer aspires/wants to possess the product.

Question 9

Discrepancy Reduction

Answer 9

Discrepancy reduction is a response to negative information from the feedback system.