Powell Motors is interested in purchasing new air filters for its automobiles. To select a supplier, the company is to consider two characteristics: reliability and durability. The purchase decision lies on the performance score and importance weight of each characteristic. The performance score with respect to reliability of supplier 1, supplier 2, supplier 3, supplier 4, and supplier 5 are 10, 9, 8, 6, and 7, respectively. The performance score with respect to durability of supplier 1, supplier 2, supplier 3, supplier 4, and supplier 5 are 5, 7, 8, 8, and 6, respectively. The company, however, scores the importance weight of reliability as 9 against the score of 8 for durability. According to the multiattribute model, Powell Motors should select _____.
A) supplier 3
B) supplier 2
C) supplier 1
D) supplier 4
E) supplier 5
Question 2
_____ refers to the rate of percentage change in quantity demanded attributable to change in price.
A) Cost/benefit analysis
B) Customer demand
C) Price elasticity of demand
D) Perceived value
E) Competitive edge
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