How a Person Establishes Expectations for a Service They Have

question 13

Multiple Choice

How a person establishes expectations for a service they have never purchased but plan to purchase is influenced by each of the following EXCEPT:

• A)word-of-mouth communications.
• B)previous experience.
• C)promotional activities.
• D)personal needs.

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Definitions:

Nominal Variables

Economic variables measured in current prices, without adjusting for inflation, reflecting their value in terms of current money.

Real Variables

Economic variables that have been adjusted for inflation, allowing for the comparison of quantities over time.

Monetary Neutrality

The idea that changes in the money supply only affect nominal variables and have no long-term impact on real variables like output or employment.

Real Variables

Economic variables that have been adjusted for changes in price levels, reflecting the actual purchasing power.