When Consumers Associate a Brand with a Certain Level of Quality

question 129

Multiple Choice

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand is

• A)establishing novelty.
• B)the only one the consumer will consider.
• C)reducing delivery costs.
• D)facilitating purchasing.
• E)creating brand dilution.

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Definitions:

Total Utility

The complete pleasure or advantage a customer gets from using a certain amount of products or services.

Rational Consumer

An economic concept of a consumer who seeks to maximize utility or satisfaction from goods and services within their budget constraints.

Equilibrium

The state in which market supply and demand balance each other, and as a result, prices become stable.

Maximum Utility

The highest level of satisfaction or benefit that a consumer can obtain from the consumption of goods and services within the constraints of their income and prices.