​When Tom Decided to Buy a Washing Machine, He Had

question 142

Multiple Choice

​When Tom decided to buy a washing machine, he had very little knowledge of competing products in the market. He did research on the Internet, talked to his friends, and compared features of different models. Finally, he decided to buy an LG top load, semi-automatic washing machine. This is an example of buying a(n) _____.

• A) shopping product
• B) staple
• C) convenience product
• D) specialty product

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Definitions:

Coupon

The interest rate paid by fixed-income securities, typically expressed as an annual percentage of the face value.

Selling For

The process or act of offering goods or services in exchange for money.

Annually

Referring to events or measurements that occur once every year.

Indexed Bonds

The interest rate of such a bond is based on an inflation index such as the consumer price index (CPI), so the interest paid rises automatically when the inflation rate rises, thus protecting the bondholders against inflation.