• The 7Ps of the Extended Marketing Mix:
• Formulated by Booms and Bitner (1981) for services marketing, the 7Ps comprise:

• Product
• Price
• Place
• Promotion
• People
  6. Process
  7. Physical Evidence
  • 'Purpose' is NOT a component of the formal 7Ps marketing mix framework (it belongs to strategic vision/corporate branding).

• Heteroscedasticity in Econometrics:
• Heteroscedasticity refers to the condition where the conditional variance of the disturbance / error term ($u_i$) is non-constant across different observations of the explanatory variables:

• Violates the Gauss-Markov assumption of homoscedasticity ($Var(u_i) = \sigma^2$). While OLS estimators remain unbiased, they lose the property of minimum variance (are no longer BLUE), inflating standard errors and rendering standard t-tests invalid.
• Distractors:
• Multicollinearity: High linear inter-correlation among independent regressors ($X$).
• Autocorrelation: Correlation between error terms across different time periods ($Cov(u_t, u_s) \neq 0$).

Correct option: (2) Heteroscedasticity

• Market Structure-Conduct-Performance (SCP) Paradigm:
• Pioneered by Edward Mason and Joe S. Bain, the SCP paradigm evaluates industrial organization:
• Market Structure: Number and size distribution of buyers/sellers, degree of product differentiation, entry barriers.
• Market Conduct: The patterns of behavior and business strategies that enterprises adopt in adjusting to markets, specifically including price-setting policies, output and market sharing strategies, collusion, and tactics aimed at coercing competitors.
• Market Performance: Economic efficiency, price spreads, profit margins, and progressiveness in resource allocation.

Correct option: (1) Market sharing and price setting policies