Why Do All Consumers Sometimes Replace a Product That Still

question 41

Multiple Choice

Why do all consumers sometimes replace a product that still functions?

• A) Desire for new features
• B) Change in the environment
• C) Change in the person's role
• D) All of the above

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Definitions:

Hedonic Treadmill

A theory suggesting that people continually seek new levels of stimulation or material goods to maintain happiness, but generally return to a stable level of happiness despite major positive or negative changes.

Prospect Theory

Prospect theory is a behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Neoclassical Economics

An economic theory that focuses on how consumer demand and production costs influence price, output, and income distribution in markets.

Behavioral Economics

A field of study that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.