John Has Decided That He Needs to Switch Cellular Service

question 47

Multiple Choice

John has decided that he needs to switch cellular service providers because his cell phone doesn't work in his new apartment. Within the context of the model of consumer decision making, this is an example of ________ need recognition.

• A) hypothetical state
• B) actual state
• C) desired state
• D) avoidance state
• E) psychological state

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Definitions:

Cash Inflows

Money received by a business from its operational, investing, and financing activities.

Discount Rate

The rate utilized in calculating the present value of anticipated future cash flows in discounted cash flow analysis.

Salvage Value

The estimated resale value of an asset at the end of its useful life, used in computing depreciation.

Discount Rate

In finance, this rate is used to calculate the present value of future cash flows; in a broader context, it can also refer to the interest rate charged by banks to their most creditworthy customers.