Consumer Products Are Classified into Four Categories Based on the Effort

question 210

Multiple Choice

Consumer products are classified into four categories based on the effort the consumer spends on the decision, the frequency of purchase, and the

• A) amount of money the customer is willing and able to spend.
• B) number of competing or substitute products.
• C) demographics of the consumer.
• D) attributes used in making the purchase decision.
• E) consumer segmentation characteristics.

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Definitions:

Inventory Policy

Inventory policy refers to the set of guidelines or rules a company follows to manage its inventory levels, ordering, storage, and replenishment to meet customer demand efficiently.

Projected Sales

The estimated revenue that a company expects to generate from goods or services over a specific period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods that a retailer plans to buy over a certain period to maintain a desired inventory level.

Budgeted Cost

An estimated financial plan for expenditures over a specified period, often used for controlling costs.