A Decline in ________ Affects Discretionary Income and Often Leads

question 14

Multiple Choice

A decline in ________ affects discretionary income and often leads consumers to adjust their spending upwards in other categories.

• A) entertainment prices
• B) gasoline prices
• C) interest rates
• D) consumer confidence
• E) property values

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Definitions:

Target Market

The specific group of consumers at which a company aims its products and services, identified through characteristics like demographics, behaviors, and needs.

Product Line

A series of related products offered by a single company designed to serve a particular customer need or market.

Goods

Goods are tangible products or items that can be sold or bought, providing satisfaction and value to the consumer, ranging from food items to electronic gadgets.

Cannibalization

When a company's new product eats into the sales of one of its existing products.