An Experiment Found That Consumer Preference for Tempomax Watches Fell

question 87

Multiple Choice

An experiment found that consumer preference for Tempomax watches fell by 74 percent when the consumers were told that Tempomax watches were produced in Pakistan instead of Germany. Which term best explains this occurrence?

• A) national competitive advantage
• B) country-of-origin effects
• C) ethnocentric effects
• D) national reputation

---

Definitions:

Long-term Decisions

Decisions that impact an organization over an extended period, usually beyond one year, involving investments, strategic direction, and structural changes.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or investments.

Present Value

The present value of a future amount of money or series of cash flows, considering a certain return rate.

Time-adjusted Rate

A discount rate modified to account for the time value of money, often used in discounted cash flow analysis to determine present value.