Compare and Contrast Formal and Informal Reference Groups

question 16

Essay

Compare and contrast formal and informal reference groups. Which do marketers tend to prefer to target?

---

Definitions:

Straight-Line Depreciation

A way of assigning the cost of a concrete asset over its operational life in homogeneous yearly amounts.

Residual Value

The estimated value an asset will have at the end of its useful life, after depreciation has been fully taken.

Estimated Useful Life

The expected period over which an asset is likely to be functional and contribute to the production of the entity that owns it.

Trade-in Allowance

The credit value offered by a retailer to a customer towards the purchase of a new item when exchanging an older model or item.