Adam Wants to Buy a Washing Machine and Is Looking

question 146

Multiple Choice

Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________.

• A) the imported brand will not survive the competition from Maytag
• B) Maytag has a positive customer brand equity
• C) the South Korean company has a low advertising budget
• D) the imported brand is unreliable
• E) the Maytag washing machine has better features than the imported brand

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Definitions:

Merchandise Return

The process of a customer returning previously purchased merchandise to the seller, usually for a refund, store credit, or an exchange.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made on a periodic basis rather than after each transaction.

Gross Method

An accounting method for recording purchases at their gross price without deducting any cash discounts.

Merchandise Return

The process of a customer returning previously purchased merchandise back to the retailer or company.