A Reference Value Is Developed by the Consumer Through

question 16

Multiple Choice

A reference value is developed by the consumer through

• A) considering the amount of time and energy a consumer puts into the purchase process.
• B) judging similar items used by the consumer's peers.
• C) performing a careful break-even analysis.
• D) comparing the costs and benefits of substitute items.
• E) examining the true difference between customers' "needs" and "wants."

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Definitions:

Magnuson-Moss Act

A federal law enacted in 1975 designed to protect consumers from deceptive warranty practices, applying primarily to consumer products.

Written Warranty

A formal, written promise offered by a manufacturer or seller to the purchaser of goods, guaranteeing the quality or performance of a product over a specified period.

Limited Warranty

A warranty that covers only specific parts of a product or specific types of defects for a set period of time.

Full Warranty

A comprehensive guarantee that covers the repair or replacement of a product if it fails to meet specified criteria, often without extra costs to the consumer.