Despite the High Expenses Associated with Operating Elegant Stores and Purchasing

question 96

Multiple Choice

Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines,the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits.The Louis Vuitton brand alone accounts for 60% of LVMH's operating profit.On the other hand,Louis Vuitton SA spends $10 million annually battling:

• A)EU regulations.
• B)counterfeiters in countries such as Turkey,South Korea,& Italy.
• C)competitors in European countries.
• D)suppliers of needed materials.
• E)export freight and taxes.

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Definitions:

Social Influences

The effects of the presence or actions of others, directly or indirectly, on an individual's behavior, attitudes, or feelings.

James-Lange Theory

A theory of emotion that suggests emotions occur as a result of physiological reactions to events.

Physiological Responses

Automatic reactions of the body to the environment, including heartbeat, breathing rate, and muscle tension among others.

Emotion-Arousing

Referring to stimuli or situations that evoke an emotional response.