What Are Consumers Likely to Do If They Perceive an Inexpensive

question 65

Essay

What are consumers likely to do if they perceive an inexpensive brand to have about the same quality as a premium brand?

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Definitions:

Precautionary Demand

The desire to hold cash or liquid assets as a safeguard against potential financial emergencies.

Speculative Demand

The demand for assets or goods not for their immediate consumption or use, but for the purpose of resale at a higher price in the future.

Transaction Demand

The demand for money as a medium of exchange, influenced by the level of economic activity.

Branch Banking

The operation of a banking service through multiple branches located in different areas, offering a wide range of services to customers across locations.