While Consumer Tastes and Price and Availability of Similar Products

question 104

Multiple Choice

While consumer tastes and price and availability of similar products determine what consumers want to buy, consumer income determines

• A) where they buy.
• B) the degree of brand loyalty.
• C) the degree of repeat purchase.
• D) what they can buy.
• E) their likelihood of spreading positive word-of-mouth.

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Definitions:

Credit Period

The amount of time the buyer is allowed in which to pay the seller.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under previous invoices.

Percent Of Cash Discount

The percentage reduction in price offered for prompt payment of invoices to encourage early settlement of accounts payable.

Normal Credit Balance

The expected or usual balance of a specific account, where liability, equity, and revenue accounts typically have credit balances.