Downscale Consumers Are More Brand Loyal Than Upscale Consumers Because

question 20

Multiple Choice

Downscale consumers are more brand loyal than upscale consumers because ________.

• A) they have found the brand that satisfies their needs the best
• B) upscale consumers are never satisfied
• C) they cannot afford to make mistakes by switching to unfamiliar brands
• D) they have loyalty towards companies that target them specifically
• E) intergenerational brand transfer is more prevalent in these households

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in cost per unit of output decreasing with increasing scale.

Diseconomies of Scale

The phenomenon where production costs per unit increase as an operation scales up, typically due to inefficiencies or increased complexities.

Long-Run

The long-run refers to a period in economics where all factors of production and costs are variable, allowing all inputs to be adjusted.

Short-Run

A period in economics during which at least one factor of production is fixed, focusing on immediate effects and adjustments.