Expense report memo from SuperStudios Purchasing Dept. You requested

Q1a) In a saturated market, products with comparable technological features and of the same quality will have prices which vary greatly.
A1a) NO. Price will not vary if technological features are similar/comparable. Refer Tab2: Notes (According to its research and that of classical .... similar in terms of quality and technological features to competitor products... prices must meet or beat competitor prices.)


Q1b) The company should try to differentiate its product by emphasizing its unique features in order to increase market share.
A1b) YES. With unique features, the company can keep higher prices (and higher revenue) but no direct relation between higher prices and larger market share can be inferred. Refer Director's note : "our state-of-the-art technology has not been effectively replicated anywhere in the world, and our company has consistently received high ratings in customer service, so a price reduction is not defensible."

Q1c) Consumers who believe the features of two different products to be comparable will believe that the higher-cost LSX-300 is better in quality.
A1c) NO. As per the note, "customers perceive our LSX-300's to be similar in terms of quality and technological features to competitor products, our prices must meet or beat competitor prices", customers are aware that the quality of LSX-300 is similar to its competitors. And
From the info given in Tab1, we find that price of LSX-300 ($1100) is already higher than its competitor ($875). And from Tab2, we know that the customers are already aware that the quality of LSX-300 is similar to its competitors. ("customers perceive our LSX-300's to be similar in terms of quality and technological features to competitor products...")
Still, sales of LSX-300 has drastically declined from Jan to Jun,2010. Hence, this statement cannot be inferred.


Q2a) Market share percentage data for the years 1990 through 2005 is a linear function with a positive slope.
A2a) FALSE. Few of the values are equal and and we observe that change from 2004 to 2005 (40 to 38) is negative.

Q2b) The line of best fit for sales data for the years 1990 through 2005 is a linear function with a positive slope.
A2b) TRUE. Line of best fit will be a line (linear) with positive slope as sales figure are increasing throughout the given time span.

Q2c) The slope of the function representing retail price from 2001 through 2005 is zero.
A2c) TRUE. As values remain constant from 2001 thru 2005 - slope is zero.