The Effect of a Recession on a Company Like General

question 147

Multiple Choice

The effect of a recession on a company like General Motors Corporation is such that

• A)sales decline more sharply for General Motors as compared to firms that do not produce durable goods.
• B)profits fall less sharply as compared to firms that do not produce durable goods.
• C)the decline in sales is more short-lived as compared to firms that do not produce durable goods.
• D)there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods.

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Definitions:

Positioning Strategy

A marketing approach aiming to create a distinct brand identity and value proposition in the consumer's mind.

Evoked Set

a set of particular brands or products a consumer considers during the decision-making process.

Inept Set

A group of brands that a consumer excludes from purchase consideration because they are viewed as unacceptable.

Inert Set

A group of brands or products that a consumer is aware of but feels indifferent towards when making a purchase decision.