Suppose that two vendors are located on a beach that is 100 metres long and that their consumers are evenly spread along this beach. According to Hotelling's theory, if the vendors are not collaborative with each other, the most likely final physical location of the vendors will be: a. Random. b. Each of them will be located 25 metres away from each extreme, meaning that consumers will have to walk no more than 25 metres to buy ice-cream. c. Both of them will end up right in the middle, meaning that consumers will have to walk up to 50 metres. d. Any place as the location does not affect the demand that each vendor will be facing.
Suppose that two vendors are located on a beach that is 100 metres long and that their consumers are evenly spread along this beach. According to Hotelling's theory, if the vendors are not collaborative with each other, the most likely final physical location of the vendors will be: a. Random. b. Each of them will be located 25 metres away from each extreme, meaning that consumers will have to walk no more than 25 metres to buy ice-cream. c. Both of them will end up right in the middle, meaning that consumers will have to walk up to 50 metres. d. Any place as the location does not affect the demand that each vendor will be facing.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Transcribed Image Text:Questlon 1
Suppose that two vendors are located on a beach that is 100 metres long and that their consumers are
evenly spread along this beach. According to Hotelling's theory, if the vendors are not collaborative with
each other, the most likely final physical location of the vendors will be:
a. Random.
b. Each of them will be located 25 metres away from each extreme, meaning that consumers will have to
walk no more than 25 metres to buy ice-cream.
c. Both of them will end up right in the middle, meaning that consumers will have to walk up to 50 metres.
d. Any place as the location does not affect the demand that each vendor will be facing.
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